Secured Overnight Financing Rate: 75th Percentile
SOFR75 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.40
Year-over-Year Change
1.62%
Date Range
10/12/2021 - 8/8/2025
Summary
The Secured Overnight Financing Rate (SOFR) 75th Percentile represents a key benchmark for short-term borrowing costs in the financial markets. This metric provides insight into the higher-end transaction rates in the repurchase agreement (repo) market, offering a more comprehensive view of lending dynamics.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic indicator reflects the 75th percentile of transactions in the secured overnight funding market, capturing a more elevated perspective of borrowing costs. Economists use this measure to understand potential stress or premium in short-term lending markets beyond the median rate.
Methodology
The rate is calculated by collecting and ranking overnight repo transaction data, then identifying the value at the 75th percentile of those transactions.
Historical Context
Policymakers and financial analysts use this metric to assess market liquidity, potential financial stress, and underlying lending conditions in the financial system.
Key Facts
- Represents the 75th percentile of secured overnight funding transactions
- Provides a higher-end view of short-term borrowing costs
- Helps indicate potential market stress or premium in lending
FAQs
Q: How is the SOFR 75th Percentile different from the median SOFR?
A: The 75th percentile captures higher-cost transactions, offering a more elevated view of borrowing rates compared to the median rate. It helps identify potential premium or stress in the lending market.
Q: Why do economists find the 75th percentile valuable?
A: This metric provides additional insight into market conditions by showing the higher-end transactions, which can reveal nuanced lending dynamics not captured by average or median rates.
Q: How often is the SOFR 75th Percentile updated?
A: The rate is typically calculated and updated daily, reflecting the most recent overnight repo market transactions and lending conditions.
Q: What financial instruments might reference this rate?
A: Some floating-rate loans, derivatives, and financial contracts may use this rate as a benchmark for pricing or adjusting interest rates.
Q: Are there limitations to using the 75th percentile?
A: While informative, this metric represents a specific segment of transactions and should be considered alongside other market indicators for comprehensive analysis.
Similar SOFR Trends
Citation
U.S. Federal Reserve, Secured Overnight Financing Rate: 75th Percentile [SOFR75], retrieved from FRED.
Last Checked: 8/1/2025