SOFR

SOFR is the Secured Overnight Financing Rate and has been selected by the ARRC as the recommended risk-free rate (RFR) replacement to US Dollar LIBOR. SOFR is produced by the New York Fed and is a secured risk-free rate that measures the broad cost of borrowing US Dollar sums overnight, collateralized by US Treasury securities, is calculated by reference to transactions executed in the overnight US Government securities repo market, is produced as a percentage rate per annum for an overnight tenor only, is published for every New York business day on a backward-looking T+1 basis, and is subject to correction and republication at any time up to 14:30 Eastern Standard Time on the date of publication.