Risk-free rates

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Interest rate benchmarks.


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.

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