šŸ“¢ Too many exams? Donā€™t know which one suits you best? Book Your Free Expert šŸ‘‰ call Now!

    Question

    Forward looking term rate recommended by US Alternate

    Rate Risk Committee, as replacement for LIBOR is ______
    A Modified SOFR Correct Answer Incorrect Answer
    B Term SOFR Correct Answer Incorrect Answer
    C Adjusted SOFR Correct Answer Incorrect Answer
    D Compounded SOFR Correct Answer Incorrect Answer
    E Alternate SOFR Correct Answer Incorrect Answer

    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.

    Practice Next
    More Alternate Sources of Finance Questions

    Relevant for Exams:

    ask-question