Leaving LIBOR, Say Hello to SOFR


Leaving LIBOR, Say Hello to SOFR


If you have a home equity line of credit, private student loan, commercial mortgage or business loan, your payment may be tied to LIBOR. The London Interbank Offered Rate serves as the starting point for figuring out how much borrowers owe. But the interest rate underpinning trillions of dollars of loans will be changing.

In the week ahead, the Federal Reserve Bank of New York begins publishing the SOFR. The Secured Overnight Financing Rate aims to be more reliable and less contrived. It also begins a new chapter in the massive move away from LIBOR and its lock as a fundamental price of borrowed funds..

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RSK: Another acronym we laymen will not understand that will be used for financing. Hmmmmm...

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- - Volume: 6 - WEEK: 16 Date: 4/17/2018 9:09:26 AM -