floating-rate note

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Related to Floating Rate Bond: income bond

Floating-rate note (FRN)

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
(18.) See COLLATERALIZED DISCOUNT AND PAR BOND EXCHANGE AGREEMENT, supra note 12, at [section] 3.05; FLOATING RATE BOND EXCHANGE AGREEMENT, supra note 13, at [section] 3.04.
30 ( ANI ): The Government of India has announced the sale (re-issue) of several floating rate bonds. The auctions will be conducted by the Reserve Bank of India (RBI) on November 3.
The floating rate bonds bear an interest at the rate of 3.25 percent per annum over the discounted rate of the Central Bank of Kuwait, capped at 6.75%, in effect on the rate fixing dates.
The board discussed the refinancing of the floating rate bonds facility expected to mature in 2013.
The A3 rating on GIB's SAR3,500 million Floating Rate Bonds, due 2015, issued by the bank's Saudi branch
In a press release Sunday, CFE said it placed MXN3.25 billion in floating rate bonds paying annual interest of 0.45 percentage points over the TIIE interbank rate, which was 4.9% Friday.
The funds have been raised by selling floating rate bonds.
The first batch of the 10-year floating rate bonds will initially carry a coupon of 0.09% per year.
One is floating rate bonds of series 1-16 for 10 years with a coupon to be paid every quarter to be used to cover negative capital of banks until they have a capital adequacy ratio (CAR) of 0%.
On 18 July 2019 IDEX Corporation (NYSE:IEX) completed the acquisition of all outstanding shares and votes in Velcora and this acquisition constituted a change of control event as described in the terms and conditions for the 2015/2021 SEK525m senior secured callable floating rate bonds issued by the company.
The State Bank of Pakistan (SBP) on Wednesday auctioned Pakistan Investment Bonds (PIBs) worth Rs 309.415 billion for 3, 5 and 10 years in fixed and floating rate bonds.Cut off Yields for the Fixed Rate Bonds increased by 55 basis points to 14.25 percent for 3 years, remained the same at 13.80 percent for 5 years while the 10 year Cut off declined by 15 basis points to 13.55 percent.

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