SOFR
BankingDefinition
Secured Overnight Financing Rate. The benchmark replacement for LIBOR for US dollar floating-rate contracts. Calculated daily from actual overnight repo transactions on Treasury collateral.
Forward-looking term SOFR (1M, 3M, 6M) is published for use in lending. SOFR closely tracks Fed Funds with very low spread. Adoption complete as of 2023.
Forward-looking term SOFR (1M, 3M, 6M) is published for use in lending. SOFR closely tracks Fed Funds with very low spread. Adoption complete as of 2023.