May 26, 2023

4 Year SOFR / LIBOR Swap Rates for Term Loan Yield Calculation

As of 10 years ago, I know LevFin desks would calculate the yield of a term loan as (100-price)/(min(years to maturity,4))+(Spread)+(4 Year 3-month-LIBOR Swap Rate).

I don't have Bloomberg anymore and I know many loans have shifted to SOFR. When I search online, I only see 3 year and 5 year swaps for 1-month SOFR.

Anyone know a good public source for 4 year 3 month SOFR swap rates and 4 year 3 month LIBOR swap rates?

Do credit investors / Lev Fin people still use this convention for calculating yield? I always thought you should divide (100-price)/(min(years to maturity,4)) by the price of the loan but don't think people used to do this in practice.

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