SOFR (Secured Overnight Financing Rate)
A US-based risk-free rate replacing USD LIBOR for dollar-denominated loans.
Detailed Description
SOFR (Secured Overnight Financing Rate)
What does SOFR stand for?
SOFR stands for Secured Overnight Financing Rate.
Who publishes the SOFR?
The Federal Reserve Bank of New York publishes the SOFR.
How is SOFR calculated?
SOFR is calculated based on aggregated transaction data from the repo market, focusing on overnight repos collateralized by U.S. Treasury securities.
When was SOFR introduced?
SOFR was introduced in April 2018.
Why is SOFR considered a risk-free rate?
SOFR is considered a risk-free rate due to its reliance on secured transactions involving U.S. Treasury securities.