floating-rate note

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Related to Floating Rate Securities: Variable Rate Bond

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 ?
Lemberg is the fund's portfolio manager principally responsible for floating rate loans and other floating rate securities.
The types of classes that make up the portfolio are: stripped principal-only securities, interest-only securities, PAC IOettes (high coupon, small principal) without effective bands and inverse floating rate securities.
The mortgage collateral consists of variations of principal- only, interest-only, residual and inverse floating rate securities.
TOBs are floating rate securities issued by trusts into which a fund has deposited municipal securities.
The fixed - to floating rate securities are cumulative, with interest deferrable for up to five years without triggering an alternative payment mechanism, and up to ten years without triggering an event of default.
The mortgage collateral consists of variations of principal-only, interest-only, and inverse floating rate securities.
Janus Adviser Floating Rate High Income Fund seeks to provide high current income by investing at least 80% of its assets in floating rate loans and other floating rate securities.
The securities generally consist of variations of principal only, interest only, and super floating rate securities.
The notes are floating rate securities, with an issuer call option and investor put option.
The securities, with an aggregate principal balance in excess of $142 million, generally consist of variations of principal-only, interest- only, and inverse floating rate securities.
50 percent Securities and Floating Rate Securities, the "Securities").
The majority of the proceeds from the sale will be used to redeem high cost, short-term borrowings and approximately $20 million will be used to purchase floating rate securities.