The American Interbank Offered Rate (Ameribor) is a credit sensitive rate and has been used in the US loan market as a replacement reference rate for USD LIBOR, which has been phased out as a reference rate. Other USD LIBOR-alternative reference rates include Term SOFR, Daily Simple SOFR, and BSBY.

The Alternative Reference Rates Committee (ARRC) identified Secured Overnight Financing Rate (SOFR) as the most suitable alternative reference rate for USD LIBOR. According to market commentators, Term SOFR is the preferred replacement rate for LIBOR among US syndicated loan market participants, although Ameribor has also been used. According to market participants, Ameribor was used in private deals. The CEO of the American Financial Exchange (AFE) noted that SOFR and Ameribor are complementary to each other and offer robust alternatives.

Ameribor was endorsed by the Federal Reserve Chairman as an appropriate alternative benchmark to LIBOR for banks that fund themselves through the AFE or for other similar institutions for which it may reflect their cost of funding. Membership of the AFE includes regional, midsize, and community banks.

For more information on Ameribor and LIBOR transition, see Practice Note, What's Market: LIBOR Interest Rate Provisions and Loan Agreement LIBOR Fallback Checklist.