Analyzing the Three-Month Average SOFR: Relationship Of Fed Rate Hike and SOFR
@nerdbull1669:
I think we are all looking forward to the July FOMC meeting and it is all abut interest rates. In this article, I am trying my best to explore the significance and implications of the Three-Month Average SOFR, shedding light on its importance for various market participants. Benchmark interest rates play a crucial role in determining borrowing costs and shaping investment strategies. In recent years, the Secured Overnight Financing Rate (SOFR) has emerged as a key reference rate, replacing the venerable LIBOR (London Interbank Offered Rate). Understanding SOFR The Secured Overnight Financing Rate (SOFR) is a benchmark interest rate that reflects the cost of borrowing cash overnight, collateralized by U.S. Treasury securities. It is based on transaction data from the repurchase agreement