floating-rate note

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Related to Floating Rate Bond: income bond

Floating-rate note (FRN)

Floating-Rate Note

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

floating-rate note

An unsecured debt issue with an interest rate that is reset at specified intervals (usually every six months) according to a predetermined formula. Floating-rate notes usually can be redeemed at face value on certain dates at the holder's option. Floating-rate notes pay short-term interest and generally sell in the secondary market at nearly par value. Floating-rate notes are indicated in bond transaction tables in newspapers by the symbol t. Also called floater, variable-rate note. See also convertible floating-rate note, droplock bond, variable-rate demand obligation, yield curve note.
References in periodicals archive ?
The A3 rating on GIB's SAR2,000 million Floating Rate Bonds, due 2015, issued by the bank's Saudi branch
successfully completed the Exchange Offer to holders of its EUR 350,000,000 Guaranteed Subordinated Fixed to Floating Rate Bonds of 2001/2031 (ISIN: XS0126063386, Common Code: 012606338 (the "Existing Bonds")) for euro denominated Undated Guaranteed Subordinated Fixed to Floating Rate Callable Bonds of 2005 (ISIN: XS0221011454, Common Code: 012606338, WKN: A0E5JB (the "New Bonds")).
On February 25, the European Investment Bank (EIB) announced an accelerated 1-day switch tender offer and concurrent GBP 750m increase of its existing floating rate bonds due May 2018.
463,200,000 class A taxable LIBOR floating rate bonds, 'AAAsf' (EXP)'; Outlook Negative
1999 (the "Trust Deed") constituting the Floating Rate Bonds and made between
93bn) worth of seven-year floating rate bonds on the interbank market.
The blend of tax-exempt and taxable floating rate bonds were credit enhanced by Fannie Mae and were underwritten at a 6.
NEW YORK -- Fitch Ratings has withdrawn the 'AAA(EXP)' rating assigned to the Oklahoma Student Loan Authority, taxable LIBOR-indexed floating rate bonds, series 2011-1.
7m) worth of five-year floating rate bonds on the interbank market between June 25 and June 29.
which funds the purchase with an issuance of Y32 billion in secured floating rate bonds.
The lender will sell the bonds in two tranches: CNY2bn worth of fixed rate bonds and CNY1bn worth of floating rate bonds using the one-year deposit rate as the reference rate, it said.