Explainer: Do different methods used for calculating SOFR interest rates impact debt repayments?
By Mohamed Z M Aazim, Vikas Pandey and Mac Banda, Debt Management Unit, Commonwealth Secretariat In this explainer piece, we examine the different methods used by creditors to calculate interest costs under SOFR-based variable interest rate loans. We will also explain why these methods result in nearly identical debt service payments, despite using different ways of calculations.
United States Snober Abbasi Communications Division African Development Bank Chicago Mercantile Exchange International Bank
Source: thecommonwealth.org