floating-rate note

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Related to Floating-rate bond: zero coupon bond, 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 ?
In general, the floating-rate indexes reset weekly, while floating-rate bonds pay out their coupon monthly or quarterly.
India is likely to issue more floating-rate bonds in the current fiscal year as part of efforts to improve the debt market Dow Jones has reported, citing a senior finance ministry official.
Interest payments on floating-rate bonds change annually, reflecting market interest rates.
6 million in floating-rate bonds that were due in 2016 using proceeds from the sale of assets.
5 trillion yen of the bonds, which consist of 10-year floating-rate bonds and five- and three-year fixed-rate debt.
1- Turkey's Treasury will hold an auction to sell 7-year floating-rate bonds.
An additional $375 million in floating-rate bonds will also be part of the offering.
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.
When investors dumped the county's floating-rate bonds, interest rates surged as high as 10 percent.
So she's shortened the over all maturity of her portfolio, bought international fixed-income securities, and added some floating-rate bonds that respond quickly to rising rates.
Also, if interest rates begin to rise, we will be watching deals that are exposed to basis risk, such as deals with floating-rate bonds off of fixed-rate collateral or hybrid ARM deals.
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.