SOFR Approved as a Hedging Benchmark Rate
Thoughtware Article
Published: Nov 09, 2018
Authors

A team of federal regulators has been working for several years on a replacement rate for the London Interbank Offered Rate. The Federal Reserve has requested that the overnight index swap rate based on the Secured Overnight Financing Rate (SOFR) be deemed eligible as a benchmark interest rate for hedge accounting. Read on for more information.