Dear Cbonds users,
We are glad to inform you that we have begun publishing the first near-risk free rate, i.e. SOFR, on a daily basis.
The SOFR (Secured
Overnight Financing Rate) is a near-risk free reference rate that constitutes a
weighted average cost of overnight loans secured by American State
securities.The archives of benchmark indices contain figures for the period
from August 22, 2014 to the present day. The data are provided by the
Federal Reserve Bank of New York (https://www.newyorkfed.org). An
article in our glossary (http://cbonds.com/glossary/sofr)
covers the SOFR rate.
Near-Risk Free Rates
(RFRs) are overnight benchmark rates tied to the money market and based on
actual transactions. More information on the near-risk free rates is available
in the article in the glossary: http://cbonds.com/glossary/near-risk-free-rates
The importance of
near-risk free rates stems from the imperfection of the most common benchmarks
on the global market, i.e. IBOR interbank rates (LIBOR, EURIBOR, etc.). The
indices of these benchmarks are based mainly on expert evaluations, which makes
them highly subjective and significantly limits the forecasting horizon. The
near-risk free rates, in their turn, are calculated on the basis of objective
data on actual transactions, thus eliminating system risks arising upon the use
of the IBOR benchmarks.
According to expert
estimates, the global financial market will be able to completely switch over
to the new benchmarks not earlier than in 2021. However, near-risk free rates
derivative financial instruments (e.g., 1M and 3M SOFR futures on the CME Group
marketplace) and bonds tied thereto (e.g.,Fannie Mae, FRN 30jan2019, USD, http://cbonds.com/emissions/issue/448809)
Please, note that
access to the website (http://cbonds.com/) is
included in the Cbonds-Premium tariff. If you still do not have the access to
the Cbonds website, you can take advantage of all the opportunities and
appreciate the benefits of the website by submitting a trial access request (http://cbonds.com/about/paccess.php).