Near risk-free rates

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