SOFR

Definition:

Secured Overnight Financing Rate. A broad measure of the cost of overnight borrowing collateralized by Treasury securities. SOFR is published on the following business day at approximately 8:00 a.m. on the Federal Reserve Bank of New York website.

In 2017, in response to concerns about the sustainability of LIBOR, the Alternative Reference Rates Committee, a committee convened by the Federal Reserve Board and the Federal Reserve Bank of New York, identified SOFR as its preferred LIBOR-alternative reference rate for financial contracts.

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