USD – AMERIBOR

What is AMERIBOR?

AMERIBOR (American Interbank Offered Rate) is a new alternative reference rate (ARR) for the U.S. dollar interbank lending market. As a benchmark it is designed to replace the current reference rate, the London Interbank Offered Rate (LIBOR), which was phased out at the end of 2021.

How is AMERIBOR calculated?

AMERIBOR has been published by the American Financial Exchange (AFX) since 2015. Unlike SOFR, AMERIBOR is based on unsecured loans and therefore contains a credit component that is more indicative of true funding costs for a wide variety of financial institutions, typically with assets under $250BN.

AFX represents approximately 25% of all U.S. banks (source = AFX) and has traded more than $1 trillion since inception.

Key features of AMERIBOR

Key features of AMERIBOR include;

• It is an interbank offered rate calculated on an actual transaction basis and is based on the U.S. dollar interbank lending market
• It is published by the American Financial Exchange (AFX) as a more robust and reliable alternative to LIBOR
• The transition to ARRs promotes greater transparency and fairness in financial markets