floating-rate note

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Related to Floating Rate Bonds: Indexed bond, Convertible bonds, Zero Coupon Bonds

Floating-rate note (FRN)

Floating-Rate Note

A bond with a variable interest rate. These bonds typically have coupons renewable every three months and pay according to a set calculation. For example, a note may have an interest rate of "EURIBOR + 1%" and pay whatever the EURIBOR rate happens to be at the time plus 1%. Some FRNs have maximum and minimum interest rates, known as capped FRNs and floored FRNs, respectively. An FRN with both a maximum and a minimum interest rate is called a collared FRN. In the United States, government sponsored enterprises issue most FRNs while banks do the same in Europe. See also: Adjustable-rate mortgage.

floating-rate note

An unsecured debt issue with an interest rate that is reset at specified intervals (usually every six months) according to a predetermined formula. Floating-rate notes usually can be redeemed at face value on certain dates at the holder's option. Floating-rate notes pay short-term interest and generally sell in the secondary market at nearly par value. Floating-rate notes are indicated in bond transaction tables in newspapers by the symbol t. Also called floater, variable-rate note. See also convertible floating-rate note, droplock bond, variable-rate demand obligation, yield curve note.
References in periodicals archive ?
30 ( ANI ): The Government of India has announced the sale (re-issue) of several floating rate bonds.
The A3 rating on GIB's SAR2,000 million Floating Rate Bonds, due 2015, issued by the bank's Saudi branch
The issue of same amounts of fixed and floating rate bonds is jointly handled by Australia and New Zealand Banking (ASX:ANZ), Commonwealth Bank of Australia, (ASX:CBA), National Australia Bank (ASX:NAB), RBS and Westpac (ASX:WBC).
NEW YORK -- Fitch Ratings has withdrawn the 'AAA(EXP)' rating assigned to the Oklahoma Student Loan Authority, taxable LIBOR-indexed floating rate bonds, series 2011-1.
The rate of interest on the Floating Rate Bonds, 2017 (FRB, 2017) applicable for the half-year (July 2, 2016 to January 01, 2017) shall be 7.
93bn) worth of seven-year floating rate bonds on the interbank market.
The rate of interest on the Floating Rate Bonds, 2020 (FRB, 2020) applicable for the half year June 21, 2016 to December 20, 2016 shall be 6.
2bn in an issue of fixed and floating rate bonds in November 2008.
The lender will sell the bonds in two tranches: CNY2bn worth of fixed rate bonds and CNY1bn worth of floating rate bonds using the one-year deposit rate as the reference rate, it said.
7m) worth of five-year floating rate bonds on the interbank market between June 25 and June 29.
81% Bonds due 2019 and JPY 1,500,000,000 Floating Rate Bonds due 2017, pursuant to Regulation S under the Securities Act of 1933.
218,970,000 series 2010-2 taxable LIBOR floating rate bonds 'AAA/LS1', Outlook Stable.