LIBOR and ARR

AFM

Sir here what it means Secured and Unsecured nature? [Video Time Stamp: 10:49] Video Details ------------- Advanced Financial Management - AFM Interest Rate Risk Management #11. Benchmark Rates

G Chandrakanta

CA Final

★ 15K+

10-Apr-26 00:46

Answers (3)

Secured borrowing means with a security or collateral like bonds Unsecured means without any collateral

Sriram Somayajula

Admin

10-Apr-26 05:40

So in case of USA, Secured Overnight Financing Rate (SOFR) apply only for secured borrowing and lending. In case of UK, Sterling Overnight Index Average (SONIA) apply only for Unsecured borrowing and lending. Is this my understanding correct sir?

Thread Starter

G Chandrakanta

CA Final

★ 15K+

10-Apr-26 08:38

Yes they are benchmarks You can add spread if a borrowing is secured but bench mark is unsecured

Sriram Somayajula

Admin

10-Apr-26 09:03