Accreting Cap(redirected from Accreting Caps)
An interest rate ceiling on an obligation in which the principal increases over time. An interest rate ceiling is a floating interest rate with a stated, maximum rate above which it may not rise. Thus, while an interest rate with an accreting cap may only go to a certain level, the actual amount paid on it may increase without limit because the principal increases over time. See also: Accreting swap.