floating-rate note

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Related to Floating Rate Bonds: Indexed bond, Convertible bonds, Zero Coupon Bonds

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 SBP had received bids worth Rs.699.07 Billion for the fixed Rate PIB's and Rs.128.150 Billion for the floating rate bond. The total goal of the auction was Rs.100 billion for PIBs in both the fixed and floating rate categories.
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 A3 rating on GIB's SAR2,000 million Floating Rate Bonds, due 2015, issued by the bank's Saudi branch
The funds have been raised by selling floating rate bonds.
The total 80/20 finance package originated by APF consists of $114.5 million in tax-exempt floating rate bonds with another $5.5 million in taxable 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.
Mumbai: The rate of interest on the Floating Rate Bonds, 2020 (FRB 2020) shall be 6.30 percent per annum.
The rate of interest on the Floating Rate Bonds, 2020 (FRB 2020) applicable for the half year June 21, 2017 to December 20, 2017 shall be 6.39 percent per annum.
The issue of same amounts of fixed and floating rate bonds is jointly handled by Australia and New Zealand Banking (ASX:ANZ), Commonwealth Bank of Australia, (ASX:CBA), National Australia Bank (ASX:NAB), RBS and Westpac (ASX:WBC).

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