SOFRra
SOFRra is a term that emerged in financial markets referring to the Secured Overnight Financing Rate (SOFR) and its associated futures and options contracts. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. It is a key benchmark interest rate that has largely replaced LIBOR in many financial contracts. The "ra" in SOFRra is not a formal designation but rather a conversational shorthand used by market participants to encompass the entire ecosystem of SOFR-related derivatives.
The development of SOFR was a response to concerns about the reliability and transparency of LIBOR. SOFR
SOFRra, in its informal usage, signifies the increasing dominance of SOFR as a reference rate across various