Discount Margin


Also found in: Dictionary, Thesaurus, Medical, Acronyms, Encyclopedia.
Related to Discount Margin: Reset Margin

Discount Margin

The average, expected return over a given reference rate for a floating-rate security. Because a floating-rate security by definition changes its return over time, the discount margin estimates the return over the reference rate by assuming that the floating rate will follow a certain pattern between issue and maturity.
References in periodicals archive ?
The securities, rated Aa2 by Moody's and AAA by Fitch, mature on 23 March 2016, with the coupon equalling the discount margin.
High discount margins are prevalent, consumers are prone to impulse buys, and repeat business is difficult to predict, Anant Choubey, vice president of sales and marketing at Capillary Technologies, says.
An interest profit is the difference between returns on invested premiums and the discount margins on those premiums which insurers promise to policyholders.