variable-rate note

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Variable-Rate Note

A bond with an interest rate that changes periodically. 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 variable-rate notes have maximum and minimum interest rates, known as capped notes and floored notes, respectively. A variable-rate note with both a maximum and a minimum interest rate is called a collared note. In the United States, government sponsored enterprises issue most variable-rate notes, while banks do the same in Europe. See also: Adjustable-rate mortgage.

variable-rate note

References in periodicals archive ?
0 million Series 2009-1 Class A principal at-risk variable rate notes and "b" to the $75.
Standard & Poor's has published a BB-(sf) rating for the Class A Calypso Capital II Limited Principal At-Risk Variable Rate Notes and B+(sf) for the Class B Calypso Capital II Limited Principal At-Risk Variable Rate Notes.
has issued US$ 70m Series 2011-1 Class A Principal At-Risk Variable Rate Notes (Class A Notes) and US$ 131.
has placed under review with negative implications the debt ratings of "bb-"on $100 million Series 2009-1 Class A and "b" on $75 million Series 2009-1 Class B principal-at-risk variable rate notes (collectively, the notes) due December 7, 2012, issued by Montana Re Ltd.
29 /PRNewswire-FirstCall/ -- Aon Corporation today announced the successful private placement of $300 million of principal at-risk variable rate notes.
has placed under review with developing implications the debt rating of "bb+" on $200 million Series 2008-1 Class A principal at-risk variable rate notes (the notes) due August 5, 2011, issued by Topiary Capital Limited (the issuer) (Grand Cayman, Cayman Islands).
In the private placement, which closed on 6 June 2006, USD 950 million of principal at-risk variable rate notes have been purchased by a variety of institutional investors according to rule 144A.
Topiary Capital Limited--"bb+" on $200 million Series 2008-1 Class A Principal-at-Risk Variable Rate Notes due August 5, 2011 sponsored by Platinum Underwriters Bermuda Ltd.
The Class D variable rate notes due February 24, 2010 have been assigned a "BB" senior secured debt rating by Standard & Poor's.
Debt profiles are favorable although the town is exposed to an above average level of risk associated with unhedged variable rate notes.

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