RiskSpan's consulting experts explain the basics of the LIBOR to SOFR transition.
The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
SOFR is an overnight, secured, nearly risk-free rate, while LIBOR is an unsecured rate published at several different maturities. It is a fully transaction-based rate incorporating data from transactions across three segments of the U.S. Treasury Repo market.
In our guide, LIBOR to SOFR Transition, we cover the basics of the transition, and what you need to get ready. Including: