Secured Overnight Financing Rate

Secured Overnight Financing Rate

(SOFR)

(SOFR)

SOFR, Secured Overnight Financing Rate,  is a U.S. dollar benchmark interest rate that reflects the cost of overnight borrowing collateralized by U.S. Treasuries. It replaced LIBOR in many loans and derivatives. In RWA and credit contexts, SOFR often serves as the base rate for pricing variable yields.