Examples of Daily Compounded SOFR in a sentence
In two notes prepared by the ARRC Business Loans Working Group, it was noted that "the recommended “in arrears” structures are: (i) Daily Simple SOFR and (ii) Daily Compounded SOFR.
In addition, the existing SOFR Index could be of less use for Daily Compounded SOFR loans than other products for several reasons.
Furthermore, with respect to Daily Compounded SOFR implemented “in arrears,” parties will need to consider what changes may be necessary to accommodate not knowing the interest rate at the beginning of the interest period, for instance, the impact on calculating interest due on loans that are repaid prior to the end of the interest period.
There are four different types of SOFR indices, all with different administrators, licensing requirements and calculations: Daily Simple SOFR, Daily Compounded SOFR, CME Term SOFR (forward looking), and SOFR Averages (backward looking).
Any suchadditional insurance coverage shall be evidenced by an appropriate certificate of insurance and shall take effect within the time set forth in the addendum.