AMERIBOR

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]