Frequently asked Questions
- What does SOFR stand for? The Secured Overnight Financing Rate.
- What is SOFR? SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.
- What is Term SOFR? Term SOFR is a a forward looking-term rate based on SOFR.
- When will Term SOFR be published? The Alternative Reference Rates Committee's paced transition plan aims to produce Term SOFR in 2021.
- What is the Alternative Reference Rates Committee (ARRC)? The ARRC, which first met in December of 2014, is comprised of a group of market participants initially convened by the Board of Governors of the Federal Reserve System and the New York Fed in cooperation with the U.S. Department of the Treasury, the U.S. Commodity Futures Trading Commission, and the U.S. Office of Financial Research to identify an alternative reference rate for use primarily in derivatives contracts.
- Is SOFR replacing LIBOR? SOFR is the preferred replacement to USD LIBOR.
- What is the SOFR rate today? You can visit SOFR Academy to view the latest SOFR rates.
- Is SOFR lower than LIBOR? SOFR does not contain a credit premium so is generally lower than LIBOR.
- Why is LIBOR being discontinued? The number of transactions that underpin LIBOR have diminished.
Useful Resources
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