Interest cap 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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-''Tax - anti-avoidance''.
+Risk-Free Rate.
-Limits on corporate tax relief for interest and amounts economically equivalent to interest.
+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.
-Do not confuse with an interest ''rate'' cap, which is a hedging instrument to manage interest rate risk.
+Theoretically risk free rates of ''investment'' return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.
 ==See also==
-* [[Corporate Interest Restriction]]
+*[[Capital asset pricing model]]
-* [[Debt cap]]
+*[[RFR WG]]
-* [[Fixed ratio method]]
+*[[Risk-free rate of return]]
-* [[Interest rate cap]]
+*[[Risk-free rates]]
-* [[Tax avoidance]]
+*[[SONIA]]
-* [[Tax relief]]
-* [[Worldwide interest cap]]
-[[Category:Accounting,_tax_and_regulation]]
+[[Category:Corporate_financial_management]]
+[[Category:Financial_products_and_markets]]