Blog

Guides and explainers on risk-free rates, SOFR loan mechanics, and the LIBOR transition.

17 August 2026

SOFR vs. EFFR: What's the Difference?

SOFR and the Effective Federal Funds Rate both come from the NY Fed and sit close together, but they measure completely different markets.

SOFREFFRfederal funds ratebenchmark ratesFederal Reserve

19 July 2026

Cooler CPI, a Fed Dissent Brewing Before July 28-29

June CPI cooled to 3.5%, but Dallas Fed's Lorie Logan just became the first Warsh-era FOMC voice to call publicly for a hike. What it means for SOFR loans.

SOFRFederal ReserveFOMCCPIinterest rates

18 July 2026

Global Rate Divergence: Fed Holds While ECB and BoJ Hike

The Fed, ECB, Bank of Japan, and Bank of England are pulling in different directions for the first time in years. Here's what the split means for loans priced off SOFR, SONIA, €STR, and TONA.

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12 July 2026

Why Does SOFR Sometimes Spike? Inside the Repo Market and the Fed's Backstop

SOFR is derived from the Treasury repo market, and repo rates occasionally jump at quarter-ends. Here's what causes the spikes, how the Fed's Standing Repo Facility contains them, and what it actually means for a SOFR loan's total interest.

SOFRrepo marketFederal ReserveStanding Repo Facilityloan mechanics

11 July 2026

What Is SOFR? Meaning, Today's Rate & How It Works (2026)

SOFR is the US benchmark rate that replaced LIBOR. See how the NY Fed calculates it, check today's rate, and calculate SOFR loan interest free — no sign-up.

SOFRinterest ratesbenchmarksLIBOR replacementFederal Reserve

10 July 2026

Fed Minutes Show a Split Committee, Just as a Weak Jobs Report Cools Hike Odds

The June FOMC minutes revealed real disagreement over whether to raise rates in 2026, but days later a soft June jobs report pushed hike odds back down. Here's what the two signals mean for SOFR and Term SOFR borrowers ahead of the July 29 meeting.

SOFRFederal ReserveFOMCinterest ratesTerm SOFRloan pricing

9 July 2026

Day Count Conventions Explained: Actual/360 vs Actual/365 vs 30/360

Day count conventions quietly determine how much interest a floating-rate loan actually accrues. This guide explains Actual/360, Actual/365, and 30/360, and how each applies to SOFR, SONIA, and €STR loans.

day count conventionActual/360Actual/36530/360SOFRSONIAloan mechanics

9 July 2026

What Is the Credit Adjustment Spread (CAS)? SOFR's Fix for the LIBOR Gap

The credit adjustment spread (CAS), also called the credit spread adjustment (CSA), compensates for the structural gap between LIBOR and SOFR. Here's how it was calculated, where it still applies, and why most new loans no longer use it.

SOFRCASCSALIBOR transitioncredit adjustment spreadARRC

8 July 2026

What Is €STR? The Euro Short-Term Rate Explained

€STR (the euro short-term rate) is the ECB-administered benchmark for euro-denominated loans and derivatives. Learn how it's calculated, how it compares to EURIBOR, and what the ECB's June 2026 rate hike means for borrowers.

ESTR€STRinterest ratesbenchmarksECBeuro

1 March 2025

From LIBOR to SOFR: What Borrowers Need to Know

LIBOR was permanently discontinued on 30 June 2023. This guide explains why LIBOR ended, how the transition to SOFR works, and what the credit adjustment spread means for your loan.

LIBOR transitionSOFRcredit adjustment spreadARRCfallback rates

15 February 2025

Compounded SOFR in Arrears: How It Works

Compounded SOFR in arrears is the ARRC-recommended method for calculating interest on floating-rate loans. This guide explains the formula, the lookback period, and observation shift with worked examples.

SOFRcompounded in arrearslookbackobservation shiftloan mechanics