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Difference between SIBOR and SOR

Quoting from the SIBOR wikipedia entry,

SIBOR stands for Singapore Interbank Offered Rate and is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market).

On the other hand

The Swap Offer Rate (SOR) represents the effective cost of borrowing SGD synthetically through borrowing USD for 3 months and swap out the USD in return for SGD for the same maturity.

The fixing authority for both rates is the Association of Banks in Singapore. To summarize some of the differences between the two:

  • Sibor is influenced by the supply and demand for funds in the Singapore interbank market, whereas SOR is more exposed to factors external to Singapore such as USD interest and exchange rates.
  • SOR is more volatile because exchange rates as well as USD money market rates tend to fluctuate more



6 responses to “Difference between SIBOR and SOR”

  1. Daily rates

    Yen Kai, just want to thank you for providing the rates in graph form and keeping it updated.

    Submitted by Anonymous

  2. Term structure

    Hi, may I know, how do I find the term structure of SIBOR? Also, where do you get these daily rates datas?
    Thanks beforehand

    Submitted by Anonymous

  3. SIBOR Yield Curve

    The SGS Daily Domestic Interbank Rates lists the SIBOR for overnight up to 12 months. There is no chart form of this yet, thanks for your suggestion, i might just put the yield curve for this as well. The SOR rates are from the OCBC Wealth Management page.

    Submitted by yenkai

  4. SIBOR forward curve

    would be useful to see the forward curve ie what is market expectation of 3mth SIBOR say for 1stjan 2010. Does anyone know if the "man in the street" can trade this as im looking to hedge a mortage and lock in some attractive mid -term rates

    Submitted by Anonymous

  5. Sibor Forward Curve

    I have a similar question. What's the accepted wisdom, if at all there is any, on how the Sibor curve will look like for the rest of 2009 and calendar 2010? This is important because of loan facilities being offered pegged to the inter-bank rate ...
    Thanks

    Submitted by Anonymous

  6. Unfortunately, only the MAS

    Unfortunately, only the MAS policy setting officials will know what future Sibor is likely to be, depending on economic indicators. As the saying goes, no risk, no gain. You can't profit from low rates while also having the security of visibility into future rates. Everything comes with a price. At best, you can take a calculated risk.

    Submitted by yenkai