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.
References in periodicals archive ?
The securities, rated Aa2 by Moody's and AAA by Fitch, mature on 23 March 2016, with the coupon equalling the discount margin.
The discount margin comes to 3-month Libor + 158 basis points.
The discount margin is three-month Libor plus 52 basis points.