WHAT IS SOFR? (EASIEST EXPLANATION) Straight to the Point скачать в хорошем качестве

WHAT IS SOFR? (EASIEST EXPLANATION) Straight to the Point

In around two minutes you will know what is SOFR. You will get both professional definition and easy explanation. No intro, no outro, straight to the point. ► My 204 Companies Watchlist: https://bit.ly/3cbWL3f ► Get $10 for Opening an Investment Account with Wealthsimple (Canada, USA, UK): https://bit.ly/3kzztaD ► Book FREE 15 Minutes Call "The Power of Investments": https://bit.ly/3kvL36C ► Download my FREE eBook about Investments: https://bit.ly/2FL2UHI ► Follow Me On Instagram:   / artemdkrv   SOFR, or the Secured Overnight Financing Rate, is a benchmark interest rate for dollar denominated derivatives and loans. SOFR will completely replace LIBOR in 2023. And if you are not sure what LIBOR is, feel free to watch my previous video. LIBOR was previous benchmark interest rate that was used for short term loans. But because of its unreliability due to several banks influencing the rate to their favor, it is being replaced by SOFR. LIBOR was using the data provided by major banks in order to establish the benchmark interest rate. And it was manipulated several times. But SOFR is based on transactions in the Treasury repurchase market. Which means that is more reliable comparing to LIBOR. SOFR can’t be easily manipulated. The rate is based on pure math of multiple transactions. And the number of these transactions is 1500 higher than those that LIBOR is based upon. Also making SOFR to be more accurate than LIBOR. Unlike LIBOR, SOFR is used for dollar denominated financial instruments at this moment. But countries have started to come up with their own alternatives. If you find my content interesting, please consider subscribing to my channel. It helps a lot as a beginner creator. And let me know if there is anything you would like to know about personal finances and investing.