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.

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
• Financial Stability Board
• Gilts
• Interest rate risk
• LIBOR
• Risk-free rate of return
• SOFR
• SONIA