InfraComputeThe capital behind compute.
Glossary / finance terms

Secured Overnight Financing Rate (SOFR)

A US dollar overnight benchmark measuring the cost of borrowing cash secured by US Treasury securities.

Why the distinction matters

The New York Fed publishes overnight SOFR. A loan may use a term rate or compounded convention instead, so retain the exact benchmark, observation period and floor.

Read the structure

How GPU collateral and customer cash flows support lending, and where the two can diverge.

GPU-backed loans: contracts, equipment and repayment ↗

For in-house counsel

Secured Overnight Financing Rate in the filed documents

Where the term turns up in filed contracts and what is market, for the lender’s or the borrower’s side. Previews are open; the full text is free with InfraCompute Weekly.

Related terms

Evidence & interpretation

Sources for the examples

The New York Fed source supports the overnight benchmark definition. Loan conventions must be read in the particular agreement.

  1. New York Fed: SOFR definition and data ↗

Explanatory definition, not a statement that a particular transaction contains this term or a substitute for its contractual definition.

← Browse all definitions
Randeep Bubbra

InfraCompute Weekly

The week in compute finance, read from the filings.

Deals, terms and the clauses behind them, for the people financing data centres, GPU clouds and the power behind them. By Randeep Bubbra.

Negotiating this term in a live deal? Book 20 minutes with Randeep.

Fridays, one email. Work email only. Unsubscribe any time. Privacy.