SOFR (Secured Overnight Financing Rate)

SOFR is a benchmark interest rate, published since 2018 by the Federal Reserve Bank of New York, derived from actual overnight Treasury repurchase transactions; it replaced LIBOR as a reference rate.

SOFR is transaction-anchored — computed from real, observed borrowing rather than bank estimates — which is precisely why it succeeded the survey-based LIBOR, which was vulnerable to manipulation.

It is the canonical example of why WorkForce anchors its index to verified transactions: a reference rate built on real activity is defensible enough to embed in contracts.