Discount Margin


Also found in: Dictionary, Thesaurus, Medical, Acronyms, Encyclopedia.
Related to Discount Margin: Reset Margin

Discount Margin

The average, expected return over a given reference rate for a floating-rate security. Because a floating-rate security by definition changes its return over time, the discount margin estimates the return over the reference rate by assuming that the floating rate will follow a certain pattern between issue and maturity.