The American Interbank Offered Rate (AMERIBOR), or simply Ameribor, is a reference rate for corporate borrowing costs for periods between 30 and 270 days.[1][2][3] It is based on short-term funding data from the Depository Trust & Clearing Corporation.[1]

History

Introduced by Richard Sandor, who is known for creating interest-rate futures in the 1970s, Ameribor is determined on the American Financial Exchange.[1][4] This is a platform where banks lend through mutual credit lines.[1][5]

Ameribor serves as a competitive alternative to the Secured Overnight Financing Rate (SOFR), which only provides an overnight rate.[1]

Ameribor is favored by smaller banks as it accurately represents the fund trading costs for banks outside the Federal Reserve's primary dealers. These banks often lack access to repo markets.[1]

References

  1. 1 2 3 4 5 6 Verlaine, Julia-Ambra (April 19, 2021). "Libor-Replacement Competitor Gains Strength From New Offerings". Wall Street Journal – via www.wsj.com.
  2. ↑ Childs, Mary. "Pioneer of Financial Futures Now Brings You Libor Alternative—And Futures To Match". www.barrons.com.
  3. ↑ "What Is Ameribor?". Investopedia.
  4. ↑ "Overnight Unsecured AMERIBOR Benchmark Interest Rate". FRED, Federal Reserve Bank of St. Louis. December 11, 2015.
  5. ↑ Kruger, Daniel (April 16, 2019). "Futures Guru Targets Libor Replacement". Wall Street Journal – via www.wsj.com.
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