convertible floating-rate note(redirected from Convertible Floating-Rate Notes)
Convertible Floating-Rate Note
A debt security with a floating interest rate that may be exchanged for another debt security with a higher, fixed interest rate. Most floating-rate notes expose holders to the risk that declining interest rates will reduce their returns. A convertible floating-rate note protects holders by giving them the option to lock-in their return, should interest rates fall significantly.
convertible floating-rate note
A floating-rate note that gives the holder the option of exchanging it for a longer-term debt security with a specified coupon. Unlike a regular floating-rate note, the convertible feature protects investors against declining interest rates.