View source for Risk-free rates

''Interest rate benchmarks''.

(RFR).

In the context of interest rate benchmarks, 'risk-free rates' include SOFR (the Secured Overnight Financing Rate) and SONIA.

The Financial Stability Board (FSB) recommended in 2014 that stakeholders should identify risk-free rates that might be used as alternatives to LIBOR.

As of 2024, this transitional work was substantially complete.


Risk-free rates are also known as ''near'' risk-free rates, recognising that they are not entirely risk-free.


==Capital asset pricing model==

RFRs should not be confused with the theoretically risk free rate of investment return, used in the Capital asset pricing model.


== See also ==
* [[Benchmark]]
* [[Capital asset pricing model]]
* [[Credit spread ]]
* [[€STR]]
* [[Financial Stability Board]]
* [[Gilts]]
* [[Interest rate risk]]
* [[LIBOR]]
* [[Risk asset]]
* [[Risk-free asset]]
* [[Risk-free rate of return]]
* [[Risk-off]]
* [[Risk-off asset]]
* [[Risk-on]]
* [[SARON]]
* [[SOFR]]
* [[SONIA]]
* [[TONA]]

[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_products_and_markets]]
[[Category:Identify_and_assess_risks]]