Indexed rate

Indexed rate

An interest rate linked to an index, usually the CPI.
References in periodicals archive ?
If they do, other changes will kick in, including replacing the current fixed gas tax with an indexed rate on the wholesale price of fuel.
In addition, CRL recommends: * Lenders should qualify borrowers based on the fully indexed rate of the loan -- not the teaser rate; * Agencies should pursue meaningful enforcement against lenders and brokers whose underwriting practices harm homeowners; * Federal regulators should require that subprime lenders evaluate the borrower's ability to repay before making a home loan.
which provided liquidity for the bonds while in the variable rate interest modes, and (ii) conversion of the interest rate on the bonds from a variable rate mode to an indexed rate mode.
The bonds initially bear interest in the weekly rate mode, but may be converted to a daily, monthly, quarterly, semiannual, auction, fixed or indexed rate mode.
The bonds initially bear interest in the daily rate mode, but may be converted to a weekly, monthly, quarterly, semiannual, auction, fixed or indexed rate mode.
In particular, while yields on our adjustable rate assets will ultimately move in response to movements in short term rates, they will do so with a lag owing to reset frequencies that are often greater than monthly and owing to interim and lifetime securities maximum coupon reset rates that may preclude a security from achieving its fully indexed rate.
The lender can then recast the loan as a fully amortized adjustable mortgage at the fully indexed rate.
She went on to say that the option ARMS that offer a start rate of as little as 1% were equally dangerous because the start rate is, in most cases, only good for one month and goes to the fully indexed rate, causing negative amortization because the unpaid interest is added to the loan balance.
The bonds may also bear interest at a daily rate, monthly rate, quarterly rate, semiannual rate, auction rate, fixed rate or indexed rate.
After the initial weekly interest rate mode, bonds may be converted to bear interest at a daily, monthly, quarterly, semiannual, auction, fixed or indexed rate.
For example, majorities of these large customers express interest in choosing among pricing options and flexible or indexed rate structures instead of a single rate design.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS August 1999 - August 2000 (Dollars in millions) 2000 FEB MAR APR Total Assets $ 43,417 $ 45,636 $ 46,449 Cash and Investments $ 972 $ 1,822 $ 1,495 Loan balance (Including MBS) $ 40,773 $ 41,883 $ 42,980 Loans Originated - Month $ 1,185 $ 1,673 $ 1,605 Fully Indexed Rate on Loans Originated - Month 7.