Indirect quote and SOFR term rate: Difference between pages

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imported>Doug Williamson
(Generalise, from the USD only case.)
 
imported>Doug Williamson
(Add link.)
 
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A foreign exchange rate quotation where the foreign currency amount is divided by the quoted rate, in order to calculate the domestic currency equivalent.  
''Interest rates - reference rates - forward-looking benchmarks - USD - SOFR''.
 
Term SOFR refers to a forward-looking benchmark interest rate, based on the USD Secured Overnight Financing Rate (SOFR), as published by the New York Fed.
 
 
:<span style="color:#4B0082">'''''SOFR term rate widely welcomed'''''</span>
 
:"USD Markets have been busy over the Summer, and it’s beginning to feel as it the direction of travel [in USD LIBOR transition] is more aligned.
 
:In particular, the recommendation of a SOFR Term rate has been widely welcomed and should reduce the demand from some parts of the market for credit sensitive rates (such as BSBY) as an alternative to LIBOR."
 
:''Status Update – LIBOR transition - Sarah Boyce - Association of Corporate Treasurers - 07 September 2021''
 


== See also ==
== See also ==
* [[Base currency]]
* [[Bank of England Base Rate]]
* [[Direct quote]]
* [[Benchmark]]
* [[USD]]
* [[BSBY]]
* [[New York Fed]]
* [[Risk-free rates]] (RFR)
* [[SOFR]]
* [[SONIA]]
* [[Term]]
* [[Term fixing]]
* [[Term rate]]
* [[Term SONIA reference rate]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 15:37, 30 September 2021

Interest rates - reference rates - forward-looking benchmarks - USD - SOFR.

Term SOFR refers to a forward-looking benchmark interest rate, based on the USD Secured Overnight Financing Rate (SOFR), as published by the New York Fed.


SOFR term rate widely welcomed
"USD Markets have been busy over the Summer, and it’s beginning to feel as it the direction of travel [in USD LIBOR transition] is more aligned.
In particular, the recommendation of a SOFR Term rate has been widely welcomed and should reduce the demand from some parts of the market for credit sensitive rates (such as BSBY) as an alternative to LIBOR."
Status Update – LIBOR transition - Sarah Boyce - Association of Corporate Treasurers - 07 September 2021


See also