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 auction which will be conducted using multiple price method, will reissue 'Government of India Floating Rate Bonds 2024' for a notified amount of Rs.
2bn in an issue of fixed and floating rate bonds in November 2008.
81% Bonds due 2019 and JPY 1,500,000,000 Floating Rate Bonds due 2017, pursuant to Regulation S under the Securities Act of 1933.
93bn) worth of seven-year floating rate bonds on the interbank market.
218,970,000 series 2010-2 taxable LIBOR floating rate bonds 'AAA/LS1', Outlook Stable.
76,300,000 class A-1 AMT tax-exempt LIBOR floating rate bonds 'AAA/LS1'; Outlook Stable;
7m) worth of five-year floating rate bonds on the interbank market between June 25 and June 29.
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.
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.
Best Europe - Rating Services Limited has assigned a debt rating of "a" to the EUR 500 million subordinated fixed to floating rate bonds recently issued by Hannover Finance (Luxembourg) S.
student loan revenue bonds, series 2010-1 tax-exempt Non-AMT LIBOR floating rate bonds (NTHEA 2010-1) as follows:
The index includes floating rate bonds indexed to one and three month Libor, Prime, Fed Funds, and other indices.