SOFR futures
BankingDefinition
Futures contracts on the Secured Overnight Financing Rate. Replaced Eurodollar futures in 2023. Liquid out to ~5 years of forward contracts.
Used to hedge floating-rate exposure, infer market expectations of Fed policy, and arbitrage between cash and futures rates.
Used to hedge floating-rate exposure, infer market expectations of Fed policy, and arbitrage between cash and futures rates.