Glossary Term

    SOFR (Secured Overnight Financing Rate)

    By Updated

    The benchmark overnight rate for secured borrowing in the US repo market, calculated from actual transactions in Treasury collateral. SOFR replaced LIBOR as the primary dollar-funding rate and now sits inside the Federal Reserve's policy corridor. Where SOFR sits relative to IORB tells you whether the system is in an ample-reserves regime or trending toward scarcity.

    What SOFR Is

    The benchmark overnight rate for secured borrowing in the US repo market, calculated from actual transactions in Treasury collateral. SOFR replaced LIBOR as the primary dollar-funding rate and now sits inside the Federal Reserve's policy corridor. Where SOFR sits relative to IORB tells you whether the system is in an ample-reserves regime or trending toward scarcity.

    Where SOFR Appears in TBL Research

    SOFR is one of the money markets and fed plumbing that TBL tracks. For how it fits the broader framework, see Bitcoin and Global Liquidity.

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    The indicators defined here are tracked live on TBL Pulse and interpreted in weekly written form in TBL Pro.