Index linked bond and RFR: Difference between pages

Revision as of 18:33, 1 December 2018

Risk-Free Rate.

The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.

Also known as near risk-free rates, recognising that such rates are never entirely risk-free.

Theoretically risk free rates of investment return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.

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-A security paying a coupon that varies according to some underlying index (often called index linkers) - not a fixed, nominal coupon nor a coupon at a margin above a published reference rate.
+Risk-Free Rate.
-The most common class of index linked bonds are inflation linked bonds paying a coupon linked to inflation so as to provide a real return.
+The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.
-For example UK Index Linked Gilts or US Treasury Inflation Protected Securities (TIPS).
+Also known as ''near'' risk-free rates, recognising that such rates are never entirely risk-free.
-== See also ==
+Theoretically risk free rates of ''investment'' return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.
-* [[Coupon]]
-* [[Fixed rate bond]]
-* [[Index linker]]
-* [[Nominal bond]]
-* [[Treasury inflation-protected securities]]
-[[Category:The_business_context]]
-[[Category:Corporate_finance]]
+==See also==
-[[Category:Investment]]
+*[[Capital asset pricing model]]
-[[Category:Long_term_funding]]
+*[[RFR WG]]
-[[Category:Identify_and_assess_risks]]
+*[[Risk-free rate of return]]
-[[Category:Manage_risks]]
+*[[Risk-free rates]]
+*[[SONIA]]
+[[Category:Corporate_financial_management]]
 [[Category:Financial_products_and_markets]]