Flip-flop note

(redirected from Flip-Flop Floating-Rate Note)

Flip-flop note

Note that allows investors to switch between two different types of debt.

Flip-Flop Note

A debt security backed by two different debts, one with a variable interest rate and one with a fixed interest rate. The holder of a flip-flop note may choose which interest rate to receive at any time, depending on which one is higher for a given period.