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| ''US interest rate benchmarks''.
| | Debt backed by collateral in the form of real or monetary assets. |
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| SOFR is the Secured Overnight Financing Rate.
| | The debt provider takes a legal charge or mortgage debenture against the asset pledged as security. |
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| This is a broad treasuries repo financing rate, recommended as a benchmark by the Alternative Reverence Rates Committee (ARRC) of the Federal Reserve.
| | All other things being equal, secured debt is safer for the lender than unsecured debt. |
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| It is published by the New York Fed at approximately 8am local time.
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| | | == See also == |
| 3 April 2018 was the first time SOFR was published. It is calculated based on actual transactions and is a volume-weighted median.
| | * [[Collateral]] |
| | | * [[Debenture]] |
| In the first three months of the publication of SOFR the underlying overnight lending transaction volume was on average approximately USD 800 billion.
| | * [[Security]] |
| | | * [[Unsecured debt]] |
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| LIBOR, which was historically used as the main benchmark rate, is in the process of being discontinued following multiple irregularities and lack of sustainability in the absence of an active underlying market.
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| SOFR is the new benchmark USD rate (alternatively known as risk-free rate) and ARRC is working with the industry to transition to SOFR from LIBOR.
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| ==See also== | |
| *[[Alternative Reference Rates Committee]] | |
| *[[Federal Reserve]]
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| *[[IBOR]]
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| *[[LIBOR]]
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| *[[Reference rate]]
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| *[[Risk-free rates]] | |
| *[[Repo]] | |
| *[[SOFR term rate]] | |
| *[[SONIA]]
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| *[[Treasury]]
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| ===Other links===
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| [[Media:Slaughter and May interest rate benchmarks.pdf| 2021: A Benchmark Odyssey, Practical Guidance for Treasurers on interest rate benchmarks, Slaughter and May]]
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| [[Category:Corporate_financial_management]]
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Revision as of 11:50, 20 August 2013
Debt backed by collateral in the form of real or monetary assets.
The debt provider takes a legal charge or mortgage debenture against the asset pledged as security.
All other things being equal, secured debt is safer for the lender than unsecured debt.
See also
