# Why Central Banks Are Watching the Secured Overnight Financing Rate

Page: https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/why-central-banks-are-watching-the-secured-overnight-financing-rate
Text version: https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/why-central-banks-are-watching-the-secured-overnight-financing-rate.md
Podcast: [Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates](https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013)
Published: 2026-07-10T07:52:00+00:00
Episode link: https://audio.fexingo.com/business/monetary-policy-explained/episode-0102.mp3
Audio file: https://audio.fexingo.com/business/monetary-policy-explained/episode-0102.mp3
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Duration seconds: 637

## Resource

Episode 102 of Monetary Policy Explained with Fexingo dives into SOFR, the secured overnight financing rate that has replaced LIBOR as the benchmark for trillions in derivatives and loans. Lucas and Luna explain how SOFR is calculated from actual overnight Treasury repo transactions, why it behaves differently from the old unsecured rates, and what its recent movements imply about liquidity in the banking system. Using the June 2026 quarter-end spike in SOFR as a concrete case, they explore why central banks pay close attention to secured rates for signs of collateral scarcity and funding stress. The hosts also touch on how the shift from LIBOR to SOFR has changed the economics of floating-rate mortgages and corporate loans, and what a persistently elevated SOFR spread might signal for policy. A must-listen for anyone wanting to understand the plumbing behind interest rates. #SOFR #SecuredOvernightFinancingRate #LIBORTransition #CentralBanking #MonetaryPolicy #InterestRates #RepoMarket #CollateralScarcity #FundingStress #BenchmarkRates #Economics #FexingoBusiness #BusinessPodcast #LucasAndLuna #TreasuryMarket #Liquidity #OvernightRates #Fed Keep every episode free: buymeacoffee.com/fexingo

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