Question
Forward looking term rate recommended by US Alternate
Rate Risk Committee, as replacement for LIBOR is ______Solution
TheĀ secured overnight financing rateĀ (SOFR) is a benchmark interest rate for dollar-denominated derivatives and loans that is replacing the LIBOR. SOFR isĀ a benchmark rate administered by the Federal ReserveĀ Bank of New York (New York Fed) which has been selected to replace USD LIBOR. SOFR itself is a backward-looking overnight rate because it is based on overnight transactions in the U.S. Treasury repo market.
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