Breakeven SOFR
The benchmark level at which the reset leaves the coupon unchanged: the fixed coupon less the spread.
Definition
For a fixed-to-floating issue, the SOFR level at which the floating coupon would equal the fixed coupon it replaces. Above it at the reset the coupon rises; below it, the coupon falls. Computed in the Fixed-to-Floating Yield and Variable-Rate Reset calculators. Not to be confused with inflation breakeven.
Definitions describe how YieldDesk reads the term. Nothing on this page is investment advice or a recommendation to buy, sell or hold.