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SOFR “In Arrears” Conventions for Syndicated Business Loans

SOFR “In Arrears” Conventions for Syndicated Business Loans

www.newyorkfed.org

Compound versus Simple Inter est . The ARRC recognizes that syndicated business loans may either be based on simple or compound interest. Although compound interest more accurately reflects the time value of money and will have less hedging basis relative to SOFR OIS, implementing sim ple interest is more straightforward and the

  Compound, Interest, Convention, Inter, Compound interest, Syndicated, In terests, Conventions for syndicated

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