SOFR

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August 31, 2024 3 min read Definitions

Interbank Rates: Key Financial Benchmarks

Finance Banking Interbank Rates LIBOR SOFR Benchmark Rates Financial Instruments

Interbank rates, including prominent examples such as LIBOR and SOFR, are critical benchmarks in the financial industry that influence the valuation and utility of interest rate options and other financial instruments.

August 31, 2024 3 min read Definitions

SOFR: Secured Overnight Financing Rate

Finance Banking SOFR Interest Rates Finance Banking LIBOR

SOFR (Secured Overnight Financing Rate) is a benchmark interest rate for dollar-denominated derivatives and loans that reflects the cost of borrowing cash overnight collateralized by U.S. Treasury securities, providing a stable and tamper-resistant alternative to LIBOR.