The American Interbank Offered Rate (AMERIBOR), or simply Ameribor, is a

reference rate A reference rate is a rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house pric ...

for corporate borrowing costs for periods between 30 and 270 days. It is based on short-term funding data from the

Depository Trust & Clearing Corporation The Depository Trust & Clearing Corporation (DTCC) is an American financial market infrastructure company that provides clearing, settlement and trade reporting services to financial market participants. It performs the exchange of securities ...

History

Introduced by Richard Sandor, who is known for creating interest-rate futures in the 1970s, Ameribor is determined on the American Financial Exchange. This is a platform where banks lend through mutual credit lines. Ameribor serves as a competitive alternative to the Secured Overnight Financing Rate (SOFR), which only provides an

overnight rate The overnight rate is generally the interest rate that large banks use to borrow and lend from one another in the overnight market. In some countries (the United States, for example), the overnight rate may be the rate targeted by the central ba ...

. Ameribor is favored by smaller banks as it accurately represents the fund trading costs for banks outside the Federal Reserve's primary dealers. These banks often lack access to repo markets.

References

Reference rates {{bank-stub