About: SOFR

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Secured Overnight Financing Rate (SOFR) is a secured interbank overnight interest rate. SOFR is a reference rate (that is, a rate used by parties in commercial contracts that is outside their direct control) established as an alternative to LIBOR. LIBOR has been published in a number of currencies and underpins financial contracts all over the world. Because LIBOR is derived from banks' daily quotes of borrowing costs, banks were able to manipulate the rates through lying in the surveys. Deeming it prone to manipulation, UK regulators decided to discontinue LIBOR in 2021.

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  • Secured Overnight Financing Rate (Abkürzung SOFR) ist ein Referenzzinssatz für die Währung US-Dollar. Der SOFR basiert auf den Transaktionen des US-Dollar Repo-Marktes. (de)
  • Secured Overnight Financing Rate (SOFR) is a secured interbank overnight interest rate. SOFR is a reference rate (that is, a rate used by parties in commercial contracts that is outside their direct control) established as an alternative to LIBOR. LIBOR has been published in a number of currencies and underpins financial contracts all over the world. Because LIBOR is derived from banks' daily quotes of borrowing costs, banks were able to manipulate the rates through lying in the surveys. Deeming it prone to manipulation, UK regulators decided to discontinue LIBOR in 2021. In 2022, the LIBOR Act passed by the U.S. Congress established SOFR as a default replacement rate for LIBOR contracts that lack mechanisms to deal with LIBOR's cessation. The Act also grants a safe harbor to LIBOR contracts that transition to SOFR. Previously, SOFR was seen as the likely successor of LIBOR in the US since at least 2021. SOFR uses actual costs of transactions in the overnight repo market, calculated by the New York Federal Reserve. With US government bonds serving as collateral for borrowing, SOFR is calculated differently from LIBOR and is considered a less risky rate. The less risky nature of SOFR may result in lower borrowing costs for companies. In addition, unlike the forward-looking LIBOR (which can be calculated for 3, 6 or 12 months into the future), SOFR is calculated based on past transactions, which limits the rate's predictive value on future interest rates. In addition, SOFR is overnight, whereas LIBOR can have longer tenors. (en)
  • 担保付翌日物調達金利(Secured Overnight Financing Rate SOFR )は、ロンドン銀行間取引金利(LIBOR)の代替として選択された既存の担保付き銀行間 翌日物金利であり参照レートである。 (ja)
  • SOFR (Secured Overnight Financing Rate) — «эталонная» процентная ставка на денежном рынке в долларах США, представляющая собой средневзвешенную медианную ставку по объёму транзакций трёх различных видов РЕПО на условиях «овернайт» под обеспечение государственными ценными бумагами Казначейства США. (ru)
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  • Secured Overnight Financing Rate (Abkürzung SOFR) ist ein Referenzzinssatz für die Währung US-Dollar. Der SOFR basiert auf den Transaktionen des US-Dollar Repo-Marktes. (de)
  • 担保付翌日物調達金利(Secured Overnight Financing Rate SOFR )は、ロンドン銀行間取引金利(LIBOR)の代替として選択された既存の担保付き銀行間 翌日物金利であり参照レートである。 (ja)
  • SOFR (Secured Overnight Financing Rate) — «эталонная» процентная ставка на денежном рынке в долларах США, представляющая собой средневзвешенную медианную ставку по объёму транзакций трёх различных видов РЕПО на условиях «овернайт» под обеспечение государственными ценными бумагами Казначейства США. (ru)
  • Secured Overnight Financing Rate (SOFR) is a secured interbank overnight interest rate. SOFR is a reference rate (that is, a rate used by parties in commercial contracts that is outside their direct control) established as an alternative to LIBOR. LIBOR has been published in a number of currencies and underpins financial contracts all over the world. Because LIBOR is derived from banks' daily quotes of borrowing costs, banks were able to manipulate the rates through lying in the surveys. Deeming it prone to manipulation, UK regulators decided to discontinue LIBOR in 2021. (en)
rdfs:label
  • Secured Overnight Financing Rate (de)
  • SOFR (ja)
  • SOFR (en)
  • SOFR (ru)
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