Secured Overnight Financing Rate: 99th Percentile
SOFR99 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.43
Year-over-Year Change
0.91%
Date Range
10/6/2021 - 8/5/2025
Summary
The Secured Overnight Financing Rate (SOFR) 99th Percentile represents the highest borrowing costs in the overnight lending market, capturing extreme financing conditions. This metric provides critical insight into financial market stress and potential systemic risk.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The 99th percentile of SOFR indicates the most extreme overnight lending rates, reflecting potential market volatility or financial system strain. Economists and financial analysts use this metric to understand outlier lending conditions and potential systemic pressures.
Methodology
The rate is calculated by identifying the highest 1% of overnight lending rates in the secured financing market, typically using transaction data from repo markets.
Historical Context
Policymakers and central bankers use this metric to assess financial market stability and potential intervention points during periods of economic stress.
Key Facts
- Represents the most extreme overnight lending rates in the market
- Provides insight into potential financial system volatility
- Used as a critical indicator of market stress and lending conditions
FAQs
Q: What does the 99th percentile of SOFR indicate?
A: It shows the highest overnight lending rates, representing extreme market conditions or potential financial stress.
Q: How is the SOFR 99th percentile different from the standard SOFR?
A: While standard SOFR represents average overnight lending rates, the 99th percentile captures the most extreme borrowing costs.
Q: Why do economists track the SOFR 99th percentile?
A: It provides critical insight into potential systemic risks and unusual market conditions that might require policy intervention.
Q: How often is the SOFR 99th percentile updated?
A: The metric is typically calculated and reported daily, reflecting the most recent overnight lending market conditions.
Q: What limitations exist in interpreting the SOFR 99th percentile?
A: The metric represents a snapshot of extreme conditions and should be analyzed alongside other financial indicators for comprehensive market understanding.
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Citation
U.S. Federal Reserve, Secured Overnight Financing Rate: 99th Percentile [SOFR99], retrieved from FRED.
Last Checked: 8/1/2025