Inverse floating-rate note(redirected from Reverse Floating Rate Note)
Inverse floating-rate note
Inverse Floating-Rate Note
A bond or other debt security with a variable coupon rate that changes in inverse proportion to some benchmark rate. For example, an inverse floating-rate note may be linked to LIBOR; as the LIBOR decreases, the coupon rate increases and vice versa. An inverse floating-rate note allows a bondholder to benefit from declining interest rates. It is also called an inverse floater.