variable-rate note

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Variable-Rate Note

A bond with an interest rate that changes periodically. 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 variable-rate notes have maximum and minimum interest rates, known as capped notes and floored notes, respectively. A variable-rate note with both a maximum and a minimum interest rate is called a collared note. In the United States, government sponsored enterprises issue most variable-rate notes, while banks do the same in Europe. See also: Adjustable-rate mortgage.

variable-rate note

References in periodicals archive ?
The Australian division of the UK bank sold AUD1.5bn in equal portions of fixed and variable rate notes at 245 basis points over swap and BBSW.
New York: Fitch Ratings has affirmed the 'BB-sf' rating on the following Principal At-Risk Variable Rate Notes issued by Long Point Re III Limited, a Cayman Islands exempted company licensed as a Class C insurer:
New York: Fitch Ratings has affirmed at 'Bsf' the rating for the Principal At-Risk Variable Rate Notes issued by Cranberry Re Limited, a special purpose insurer vehicle in Bermuda as follows:
The issue comprising fixed and variable rate notes will be sold via its Australian division and will be jointly led by Australia and New Zealand Banking (ASX:ANZ), Commonwealth Bank of Australia, (ASX:CBA), National Australia Bank (ASX:NAB), RBS and Westpac (ASX:WBC).
New York: Fitch Ratings affirms the 'B+sf' rating to the Principal At-Risk Variable Rate Notes issued by Lion I Re Limited, a special purpose reinsurance vehicle in Ireland as follows:
$925.6 million outstanding at 12/31/15), a $102 million letter of credit facility due 2020 to backstop Tax-Exempt Variable Rate Notes, and a $75 million working capital facility due 2020.

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