It stands for long-dated forward rate agreement; a forward rate agreement (FRA) where the  is more than one year in the future at the time of the transaction. The underlying settlement date FRA rate is an interest rate spanning a period of more than on year. Although a typical FRA is on short-term rates (the equivalent of exchange-traded futures on short-term interest rates), long-dated versions allow investors to go long term with specific obligations, with the FRA rate being determined at contract initiation.