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.
Source: thecommonwealth.org