rfr

RFR is an acronym with several meanings across different fields. The most common uses are in finance and in procurement, though the term can appear in other contexts as well. The intended meaning often depends on the industry and the surrounding discussion, so clarification is usually needed.

In finance, RFR stands for the risk-free rate. The risk-free rate is the theoretical return on an investment with zero risk of financial loss. In practice, it is approximated by the yield on government securities considered to carry negligible credit risk, such as a country’s short- or long-term bonds. The risk-free rate serves as a baseline in asset pricing and discounting, and is a key input in models such as the Capital Asset Pricing Model (CAPM). It reflects time value and is affected by currency, maturity, and prevailing monetary policy and inflation expectations. Different markets or currencies may use different benchmarks for the RFR.

In procurement and contracting, RFR can refer to a Request for Response. This is a solicitation used by buyers to invite suppliers to respond to a defined set of requirements, sometimes as an alternative to or complement of a Request for Proposal (RFP) or Request for Qualification (RFQ). An RFR typically outlines the scope, evaluation criteria, submission instructions, and timelines, and is followed by an evaluation process to select a vendor or contractor. The exact terminology and workflow can vary by organization.

Other uses exist in various fields, including technical and regulatory contexts. Because RFR is not unique to a single domain, the intended meaning is usually inferred from context and should be defined if precision is required.