SOFR definition: Copy, customize, and use instantly
Introduction
The term "SOFR" refers to the Secured Overnight Financing Rate, which is a benchmark interest rate for overnight loans collateralized by U.S. Treasury securities. SOFR is used as a reference rate for various financial instruments, particularly for loans, bonds, and derivatives. It is considered a more robust alternative to LIBOR due to its basis in actual transactions.
Below are various examples of how "SOFR" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "SOFR" for loan agreements
This definition ties "SOFR" to loan agreements.
"SOFR" means the Secured Overnight Financing Rate, published by the Federal Reserve Bank of New York, used as the benchmark interest rate for loans under this agreement.
Definition of "SOFR" for derivatives contracts
This definition connects "SOFR" to derivatives contracts.
"SOFR" refers to the rate used as a reference for interest rate swaps and other derivative contracts, based on transactions involving overnight loans secured by U.S. Treasury securities.
Definition of "SOFR" for bond issuance
This definition links "SOFR" to bond issuance.
"SOFR" means the Secured Overnight Financing Rate, which serves as the reference rate for determining the interest rate on bonds issued under this agreement.
Definition of "SOFR" for floating-rate loans
This definition applies "SOFR" to floating-rate loans.
"SOFR" refers to the benchmark interest rate used to calculate the interest payments on floating-rate loans, adjusted periodically based on the rate published by the Federal Reserve Bank of New York.
Definition of "SOFR" for interest rate calculation
This definition ties "SOFR" to interest rate calculation.
"SOFR" means the rate derived from overnight transactions in the repo market, used as the basis for calculating the interest rate in this financial instrument.
Definition of "SOFR" for syndicated loans
This definition connects "SOFR" to syndicated loans.
"SOFR" refers to the reference rate applied in syndicated loan agreements, where the interest rate on loans is determined by the SOFR plus a spread, adjusted periodically.
Definition of "SOFR" for derivatives pricing
This definition links "SOFR" to derivatives pricing.
"SOFR" means the rate used to price derivatives, including interest rate swaps, futures, and options, based on overnight financing transactions in the U.S. Treasury securities market.
Definition of "SOFR" for risk management
This definition applies "SOFR" to risk management.
"SOFR" refers to the benchmark used in risk management strategies, including hedging interest rate risks in various financial instruments like loans and derivatives.
Definition of "SOFR" for floating-rate notes
This definition ties "SOFR" to floating-rate notes.
"SOFR" means the Secured Overnight Financing Rate, used as the reference rate for floating-rate notes, where the interest rate is adjusted periodically based on the prevailing SOFR.
Definition of "SOFR" for transition from LIBOR
This definition links "SOFR" to the transition from LIBOR.
"SOFR" refers to the interest rate benchmark that replaces LIBOR in certain financial contracts, including loans, derivatives, and bonds, following the phase-out of LIBOR.
Definition of "SOFR" for loan interest adjustment
This definition connects "SOFR" to loan interest adjustment.
"SOFR" means the rate used to adjust the interest rate on loans, where the interest rate is based on the SOFR rate, plus a margin, and adjusted periodically.
Definition of "SOFR" for financial reporting
This definition ties "SOFR" to financial reporting.
"SOFR" refers to the rate used in financial reporting for transactions involving interest rate calculations, ensuring alignment with market-based benchmark rates.
Definition of "SOFR" for capital markets
This definition links "SOFR" to capital markets.
"SOFR" means the benchmark rate used in capital markets for pricing debt securities, including bonds and loans, based on the overnight repo market.
Definition of "SOFR" for hedging contracts
This definition applies "SOFR" to hedging contracts.
"SOFR" refers to the benchmark interest rate used in hedging contracts, such as interest rate swaps, to mitigate interest rate risk.
Definition of "SOFR" for reference rate in agreements
This definition connects "SOFR" to its role as a reference rate in agreements.
"SOFR" means the reference rate used in this agreement for determining interest payments, based on the Secured Overnight Financing Rate published by the Federal Reserve Bank of New York.
Definition of "SOFR" for adjustable-rate mortgages
This definition links "SOFR" to adjustable-rate mortgages.
"SOFR" refers to the benchmark interest rate used in adjustable-rate mortgages, where the rate adjusts periodically based on the SOFR plus a margin.
Definition of "SOFR" for U.S. Treasury securities transactions
This definition ties "SOFR" to U.S. Treasury securities transactions.
"SOFR" means the rate derived from the market for overnight loans secured by U.S. Treasury securities, which serves as the basis for calculating interest in certain financial transactions.
Definition of "SOFR" for overnight financing
This definition connects "SOFR" to overnight financing.
"SOFR" refers to the rate applicable to overnight financing transactions secured by U.S. Treasury securities, serving as a benchmark for determining the cost of borrowing in the repo market.
Definition of "SOFR" for floating-rate credit facilities
This definition applies "SOFR" to floating-rate credit facilities.
"SOFR" means the rate used to calculate interest on floating-rate credit facilities, where the interest rate is adjusted periodically based on the prevailing SOFR.
Definition of "SOFR" for interest rate swap agreements
This definition links "SOFR" to interest rate swap agreements.
"SOFR" refers to the benchmark rate used in interest rate swap agreements to determine the fixed and floating leg rates in the swap transaction.
Definition of "SOFR" for currency swap agreements
This definition ties "SOFR" to currency swap agreements.
"SOFR" means the rate used in currency swap agreements to calculate the interest rate payments in the context of U.S. dollar-denominated transactions.
Definition of "SOFR" for performance-based pricing
This definition connects "SOFR" to performance-based pricing.
"SOFR" refers to the benchmark used in performance-based pricing models, where the interest rate is tied to the SOFR plus a spread, reflecting market conditions.
Definition of "SOFR" for market-based interest rate
This definition applies "SOFR" to market-based interest rate calculations.
"SOFR" means the market-based interest rate used as a benchmark for determining the cost of borrowing in various financial instruments, including loans and bonds.
Definition of "SOFR" for investment funds
This definition links "SOFR" to investment funds.
"SOFR" refers to the reference rate used in investment funds to determine the interest rate on assets linked to short-term funding costs in the financial markets.
Definition of "SOFR" for sovereign debt
This definition ties "SOFR" to sovereign debt.
"SOFR" means the benchmark rate used in the pricing of sovereign debt issued in U.S. dollars, particularly for debt linked to short-term interest rates.
Definition of "SOFR" for repo market
This definition connects "SOFR" to the repo market.
"SOFR" refers to the rate derived from the transactions in the overnight repo market, used as a benchmark for short-term lending rates in the U.S. financial system.
Definition of "SOFR" for benchmark rate updates
This definition links "SOFR" to benchmark rate updates.
"SOFR" means the rate that is updated daily and used as the benchmark for interest rates on financial instruments, reflecting the cost of borrowing in the overnight repo market.
Definition of "SOFR" for transition planning
This definition applies "SOFR" to transition planning.
"SOFR" refers to the rate adopted for use in contracts as part of the transition from LIBOR to alternative reference rates, ensuring continuity in financial market transactions.
Definition of "SOFR" for pricing derivatives
This definition ties "SOFR" to pricing derivatives.
"SOFR" means the benchmark used for pricing derivatives contracts, including swaps and options, where the floating leg is based on the SOFR rate.
Definition of "SOFR" for short-term borrowing
This definition connects "SOFR" to short-term borrowing.
"SOFR" refers to the benchmark rate used to determine the cost of short-term borrowing in the overnight repo market, securing loans with U.S. Treasury securities.
Definition of "SOFR" for loan covenants
This definition links "SOFR" to loan covenants.
"SOFR" means the rate used to determine whether certain financial covenants are met, with interest payments tied to changes in the SOFR.
Definition of "SOFR" for debt restructuring
This definition ties "SOFR" to debt restructuring.
"SOFR" refers to the benchmark rate used in debt restructuring transactions, particularly for loans and derivatives, in cases where interest rate benchmarks are being updated.
Definition of "SOFR" for capital requirements
This definition connects "SOFR" to capital requirements.
"SOFR" means the reference rate used to determine capital requirements for financial institutions, particularly in relation to the pricing of assets and liabilities linked to short-term interest rates.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.