A type of daily simple SOFR (simple daily SOFR) that represents the simple (not compounded) rate accruing during the interest period. It is calculated using simple interest over the current interest period. Therefore, the applicable rate is not known in advance of the payment date. This rate is pulled daily (daily pullback rate), but it is not compounded. This rate is basically the exact rate of interest, however the exact rate will not be known until the end of the interest period (hence it is said to be in arrears).
It is also known as daily average SOFR in arrears.
