Natural capital and Near risk-free rates: Difference between pages
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imported>Doug Williamson (Create page. Source: ACT Briefing Note, Transition to Risk Free Rate Benchmarks, October 2018.) |
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''Interest rate benchmarks''. | |||
(RFR). | |||
In the context of interest rate benchmarks, 'near risk-free rates' include SOFR (the Secured Overnight Financing Rate) and SONIA. | |||
The Financial Stability Board (FSB) recommended in 2014 that stakeholders should identify near risk-free rates that might be used as alternatives to LIBOR. | |||
They are also known more simply as risk-free rates, although strictly 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 ]] | |||
* [[Financial Stability Board]] | |||
* [[Gilts]] | |||
* [[Interest rate risk]] | |||
* [[LIBOR]] | |||
* [[Risk-free rate of return]] | |||
* [[SOFR]] | |||
* [[SONIA]] | |||
[[Category: | [[Category:Financial_products_and_markets]] |
Revision as of 18:37, 1 December 2018
Interest rate benchmarks.
(RFR).
In the context of interest rate benchmarks, 'near risk-free rates' include SOFR (the Secured Overnight Financing Rate) and SONIA.
The Financial Stability Board (FSB) recommended in 2014 that stakeholders should identify near risk-free rates that might be used as alternatives to LIBOR.
They are also known more simply as risk-free rates, although strictly 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.