Credit glossary
What is a Risk-Free Rate?
The theoretical return on a zero-risk investment, typically proxied by short-term government bond yields (e.g., US T-Bills).
Definition
Risk-Free Rate
The theoretical return on a zero-risk investment, typically proxied by short-term government bond yields (e.g., US T-Bills).
Related terms
Related glossary entries
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Calculation AgentILSCat BondILSCatastrophe ModelRisk ModellingCCRIF (Caribbean Catastrophe Risk Insurance Facility)ILSCedantReinsuranceCoCo (Contingent Convertible)CreditCollateralILSCollateralised ReinsuranceILSConditional Expected Loss (CEL)ILSCorrelationILSCouponILSCoupon DeferralCreditCyber Cat BondCyber
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ESGILSExhaustion PointILSExpected Loss (EL)ILSExpense LoadILSExposureGeneral InsuranceExtension RiskILS
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IBRD (International Bank for Reconstruction and Development)ILSILW (Industry Loss Warranty)ReinsuranceIndemnity TriggerILSIndustry Loss Index TriggerILS
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Mark-to-MarketILSMark-to-ModelILSMaturityILSMEL (Multiple of Expected Loss)ILSModelled Loss TriggerILSMoral HazardGeneral Insurance
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Parametric TriggerILSPCS (Property Claims Services)ILSPeak PerilILSPerilGeneral InsurancePERILS AGILSPremiumGeneral InsuranceProbability of First Loss (PFL)ILSProbable Maximum Loss (PML)Risk ModellingProportional PayoutILS
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RansomwareCyberReg SILSReinsuranceReinsuranceResilience BondILSRetrocessionReinsuranceReturn PeriodRisk ModellingRisk LoadILSRisk-Free RateCreditRoadshowILSRT1 (Restricted Tier 1)CreditRule 144AILS
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SCR (Solvency Capital Requirement)General InsuranceSeasonalityILSSecondary MarketILSSharpe RatioILSSidecarILSSilent CyberCyberSOFRILSSolvency IIGeneral InsuranceSpecial Purpose Vehicle (SPV)ILSSpreadILSStructuring AgentILSSubordinated DebtCreditSupply Chain AttackCyber
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