Weighted Average SOFR Sample Clauses
The Weighted Average SOFR clause defines how the interest rate for a financial product or loan is calculated based on the Secured Overnight Financing Rate (SOFR), using a weighted average over a specified period. In practice, this means that instead of using a single day's SOFR, the rate is determined by averaging the daily SOFR rates over the relevant period, with each day's rate weighted according to the amount of principal outstanding or the number of days it applies. This approach smooths out fluctuations in daily rates and provides a more stable and predictable interest calculation, addressing the problem of volatility and ensuring fairness in interest accrual for both parties.
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Weighted Average SOFR. Where this paragraph (2) applies, the Rate of Interest for an Interest Accrual Period will, subject to Condition 4(b)(xi) and as provided below, be the Weighted Average SOFR with respect to such Interest Accrual Period plus or minus (as indicated in the applicable Final Terms) the applicable Margin (if any), all as calculated by the Calculation Agent on the Interest Determination Date (and rounded, if necessary, to the fifth decimal place, with 0.000005 being rounded upwards), where:
Weighted Average SOFR. (a) Where the Reference Rate is specified as being Weighted Average SOFR, the Rate of Interest for each Interest Period will, subject as provided below, be Weighted Average SOFR plus or minus (as indicated in the Final Terms) the Margin (if any), all as determined by the Calculation Agent (or such other party responsible for the calculation of the Rate of Interest, as specified in the Final Terms) on the Interest Determination Date for such Interest Period.
(b) For the purposes of this Condition 5B.4G:
Weighted Average SOFR. Where Screen Rate Determination is specified for a Covered Bond in the applicable Final Terms Document as the manner in which the Rate of Interest is to be determined for such Covered Bond, and the Reference Rate is specified in the applicable Final Terms Document as being Weighted Average SOFR, the Rate of Interest for each Interest Period will be Weighted Average SOFR plus or minus (as indicated in the applicable Final Terms Document) the Margin (if any).