// definition
SOFR
Secured Overnight Financing Rate
Short definition
A rate published by the Federal Reserve Bank of New York measuring the cost of overnight cash borrowing secured by US Treasury securities. Term SOFR is a forward-looking benchmark for specified tenors derived from SOFR futures markets. A loan adds its contractual margin to the applicable reference rate.
risk atlas
Knowledge map
Intuition
The benchmark rate and the lender’s margin follow different mechanisms.
Related analyses
- Nebius: a 364-day Citi facility for GPU expansionRising margins, variable rates and the Citi facility’s maturity.
Primary sources
- Federal Reserve Bank of New York, SOFRTreasury repo transactions, methodology and publication of the overnight rate.
- CME, Term SOFRForward-looking benchmarks derived from SOFR futures markets.