floating-rate note

(redirected from Floating-Rate Bonds)
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Related to Floating-Rate Bonds: 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 ?
However, my goal as manager of this fund is to minimize this volatility by investing in shorter-maturity floating-rate bonds.
Treasury responded with floating-rate bonds, including Series EE bonds targeted at small investors.
The sale, which was executed via the Sandown Gold collateralised-loan-obligation platform, included GBP428m and EUR311m triple-A rated, floating-rate bonds, priced at par with a spread of 170 basis points over three-month Libor, and 160 basis points over three-month Euribor, respectively.
This new platform will be open to all regulated institutions authorized to operate in Europe and seeking to trade, among professionals, fixed and floating-rate bonds denominated in euros and issued by non-sovereign issuers.
For individual investors, the ministry has so far issued only five-year fixed-rate government bonds and 10-year floating-rate bonds.
48bn) worth of five-year floating-rate bonds on the inter-bank market on Friday as part of its routine financing issuance.
The coupon on the floating-rate bonds was set at 0.
s (TUEC) $300 million first mortgage and collateralized floating-rate bonds due May 1, 1999 are rated 'BBB' by Fitch.
The long-term 'AAA' ratings assigned to the series 2011-67C certificates are based on the higher of the ratings that Fitch has assigned to Oklahoma Student Loan Authority, Oklahoma student loan bonds and notes, tax-exempt non-AMT LIBOR floating-rate bonds, senior series 2010A-2 (rated 'AAA'; Stable Outlook) and the custodial level credit enhancement provided by Wells Fargo, securing the custodial receipts which have been deposited in the series 2011-67C trust.
The 'A-' (Single-A-Minus) ratings on BBDO Canada and Omnicom's deutschemark floating-rate bonds and the 'D-1+' (D-One-Plus) rating on Omnicom Finance's commercial paper are reaffirmed.
6bn worth of bonds were sold as fixed-rate bonds and JPY32bn was sold as floating-rate bonds.
It has also received requests for fixed-rate JGBs, which would be a change from the floating-rate bonds currently sold to individuals, according to the official.