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floater
(redirected from floaters)

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Floater
A bond or other type of debt whose coupon rate changes with market conditions (short-term interest rates). Also known as "floating-rate debt".

Notes:
For example, a floater bond may have the coupon rate set at "T-bill rate plus 0.5%".

This type of instrument is more beneficial to the holder as interest rates are rising because it allows the holder to participate in the upward movement in rates. Conversely a floater is less advantageous to the holder when rates are decreasing because the rate at which they are receiving interest is declining.

Floater
A bond whose interest rate varies with the interest rate of another debt instrument, e.g., a bond that has the interest rate of the Treasury bill +.25%.
floater
See floating-rate note.
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FLX Series floaters can be equipped with either a FLX810 Flex-Air applicator of a FLX610 liquid system.
Case IH earns three AE50 awards by Implement & Tractor
To date, Heller's Credit enhancement opportunities have generally taken three forms: 1) converting high fixed-rate tax free bonds to low floaters to significantly reduce debt service; 2) providing aggressive leverage for the acquisition of projects driven by the benefits of inexpensive low floater financing; and 3) re-enhancing existing projects based on based on today's economics, given the previous enhancer's willingness to accept a discount.
Credit enhancement for multi-family bond market by Brown, Roger / Real Estate Weekly
Inverse floaters are unusual instruments because their interest coupons float in the opposite direction of interest rates in general.
The trick to managing cash? Be creative by Anderson, Alexander M. / Financial Executive
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