The Secured Overnight Financing Rate (SOFR) is a benchmark interest rate for dollar-denominated derivatives and loans that replaced the London Interbank Offered Rate (LIBOR). SOFR took the place of LIBOR in June 2023, offering fewer opportunities for market manipulation and current rates rather tha...
SOFR Rate Chart: 2021 to 2022 One-Year Time Range LIBOR to SOFR Transition: Why is LIBOR Being Replaced? 2023 SOFR Data Chart: What is SOFR Rate Today? What is SOFR? The Secured Overnight Financing Rate (SOFR) is the benchmark rate derived from transactions observed in the Treasury “rep...
The transition from LIBOR to SOFR was completed on 30th June 2023. Read more onwhat SOFR is. How is SOFR calculated? SOFR is calculated as the average of the overnight repo lending transactions secured by U.S. Treasury securities that are cleared through the Broad General Collateral Rate (B...
SOFR and Treasury option trade remained mixed Wednesday, repositioning after underlying futures broke narrow overnight range earlier. Projected rate cut pricing regained some traction: May 2024 at -15.0bp from -13.9% this morning w/ cumulative -3.7bp at 5.291%; June 2024 -63.1% w/ cumulative ra...
Consequently, ARCC, the Federal Reserve, and other parties jointly rolled out this alternative rate. Financial authorities in the United States officially sunset LIBOR in June 2023. Secured Overnight Financing Rate (SOFR) A distinct advantage of SOFR is that it uses observable transaction data rathe...
March 2024 chance of 25bp rate cut currently -2.3% w/ cumulative of -0.06bp at 5.323%; May 2024 at -22.7% vs. -18.4% late Thursday w/ cumulative -6.3bp at 5.266%; June 2024 -61.7% from -56.4% late Thursday is nearing first full 25bp cut w/ cumulative cut -21.7bp at 5.111%...
The Secured Overnight Financing Rate is used as a benchmark for certain financial products, such as some ARMs.
LIBOR will cease June 30, 2023, and overnight SOFR is the favored replacement reference rate. Term SOFR was established to address the need for a forward-looking interest-rate replacement. The Ameribor and Bloomberg Short-Term Bank Yield (BSBY) are additional options to replace LIBOR. ...
In June 2023, the U.S. dollar London Inter-Bank Offered Rate (LIBOR) will likely be discontinued. The Alternative Reference Rates Committee has identified the Secured Overnight Funding Rate (SOFR) as the recommended alternative reference rate to replace USD LIBOR. SOFR is calculated as a volume...
All of those blogs are very much about the slower than required adoption of RFRs, particularly SOFR, as June 2023 fast approaches. What does this tell us? That LIBOR cessation in USD, despite it being a much much larger market, appears to be progressing in a similar manner as it did for...