floating-rate note

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Related to Floating-rate bond: zero coupon bond, Variable Rate 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 ?
The JPY46.9bn three year fixed-rate bond, which will mature on October 18, 2013, has a coupon of 1.79 percent, while the three year JPY5.1bn floating-rate bond, also due for maturity on October 18, 2013, offers a coupon of three-month euro/yen libor plus 150 basis points.
The floating-rate bond CCTeu has a seven-year maturity and pays a yield of 83 basis points over the six-month Euribor.
Series 30 is a AUD325 million fixed-rate bond due March 2023, Series 31 is a AUD1.05 billion floating-rate bond due March 2023 and Series 32 is a AUD125 million fixed-rate bond due March 2028.
The last tranche is a JPY10bn floating-rate bond with a coupon of 0.85 percentage point over three-month yen Libor, payable on a quarterly basis, on 9 March, 9 June, 9 September and 9 December until the 9 September 2015 maturity date.
The floating-rate bond is due in February 2019, and benefits from a 12-month extendable maturity.
We are pleased to be able to support Ronesans Holding in pioneering the floating-rate bond based on TRLIBOR as its benchmark rate which makes it accessible to international investors.
The ministry raised a total of 4,745 billion yen in six floating-rate bond issues for three years from fiscal 1983.
The second issue features a floating-rate bond to the tune of JPY32.7bn, which was sold at par with a coupon of 0.7 percentage point above three-month yen Libor.
The issue of such bonds will depend on market demand the unnamed official said.The statement came after Reserve Bank of India said that it will sell INR30bn of a 2020-dated floating-rate bond as part of the government's INR120bn borrowing programme on Friday.
8 April 2010 - UK Lloyds TSB Bank has added EUR500m (USD665.3m) to its floating-rate bond issue, Reuters reports today.
The floating-rate bond issue, to pay 47 basis points over three-month BBSW, was lead-managed by ANZ and Westpac Institutional Bank.