Floating Rate

Floating Rate

Interest rate that is reset periodically, usually every couple of months or sometimes daily.

Floating Rate

Floating rate.

A debt security or corporate preferred stock whose interest rate is adjusted periodically to reflect changing money market rates is known as a floating rate instrument.

These securities, for example five-year notes, are initially offered with an interest rate that is slightly below the rate being paid on comparable fixed-rate securities.

But because the rate is adjusted from time to time, its market price generally remains very close to the offering price, or par.

When a nation's currency moves up and down in value against the currency of another nation, the relationship between the two is described as a floating exchange rate.

For example, the US dollar is worth more Japanese yen in some periods and less in others. That movement is usually the result of what's happening in the economy of each of the nations and in the economies of their trading partners.

A fixed exchange rate, on the other hand, means that two (or more) currencies, such as the US dollar and the Bermuda dollar, always have the same relative value.

floating rate

A loan interest rate that is not fixed and does not have specified times for increase or decrease,but which floats and changes as the index changes.

References in periodicals archive ?
But, if rates fall, the LOWAR rate will adjust lower, similar to a conventional floating rate.
471,131,250 class A-1 senior floating rate notes due 2042 'AAA';
6,699,000 class B3 Floating Rate Notes, Due February 2039 'AA-';
265,000,000 class A-1 Floating Rate Notes Due 2047 'AAA';
250,000,000 class A-2 second priority senior secured floating rate notes due 2048 'AAA';
200,000,000 class A-1R revolving senior secured floating rate term notes due 2037 'AAA';
230,000,000 class A-1A senior secured floating rate term notes 'AAA';
USD900,000,000 class A-1A senior secured floating rate variable funding notes due 2051 'AAA';
US$250,000,000 class A-1 first priority senior secured floating rate notes due 2046 'AAA';
7,500,000 class X first priority senior secured floating rate notes due 2016 'AAA';
USD30,000,000 junior super senior secured floating rate notes due 2013, 'AAA';
NEW YORK -- JPMorgan announced today the launch of a new fixed income index designed to provide its clients with a broad measure of the performance of the most liquid securities in the floating rate investment grade corporate bond market.