In this video, we're going to be discussing the differences between LIBOR and the SOFR
Libor is the main interest rate that banks use to calculate the rate they charge each other for short-term loans. Libor is a floating rate, which means it changes every day based on a variety of factors including the market rate of interest.

The Secured overnight financing rate is a fixed rate that banks use to calculate the rate they charge each other for loans that are guaranteed by the government. The rate is set by the Federal Reserve and is usually higher than Libor.