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.
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variable-rate 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 ?
Secondly, the variable rate notes pay a capped Euribor up to 3%.
Swiss Re Capital Markets underwrote the transaction via two classes of principal at-risk variable rate notes issued by Frontline Re Ltd., a Bermuda exempted company licensed and registered as a special purpose insurer under the Bermuda Insurance Act 1978 and related regulations, each as amended.
Swiss Re Capital Markets underwrote the transaction through two classes of principal-at-risk variable rate notes issued by Ursa Re Ltd., each as amended.
The coverage provided by Long Point Re III's $250 million principal-at-risk, variable rate notes collateralize a three-year, per-occurrence reinsurance agreement to Travelers against hurricanes affecting the northeast region of the United States.
23 March 2011 - AM Best placed Tuesday under review with "developing" implications the debt rating of "bb+" assigned to the USD200m (EUR141.2m) series 2008-1 class A principal at-risk variable rate notes, due 5 August 2011, of Cayman Islands-based Topiary Capital Ltd.
NOK300m, three-year variable rate notes at 250 basis points over Nibor; NOK300m, five-year variable notes at 375 basis points over Nibor; NOK325m, five-year fixed rate notes at a coupon price of 7.4%; and NOK1bn, seven-year fixed rate notes at a coupon price of 8.8%.
Variable rate notes (VRNs) and floating rate notes (FRNs) were issued in an aggregate principal amount of $300 million.
New York: Fitch Ratings has affirmed the following Principal At-Risk Variable Rate Notes issued by Alamo Re Limited, a special purpose insurer vehicle in Bermuda as follows:
The company said it underwrote the transaction via three classes of principal at-risk variable rate notes issued by Laetere Re.
17 January 2011 - AM Best has downgraded to "d" from "c" the debt rating assigned to the USD150m (EUR112.9m) Series 2008-1, Class A Principal At-Risk Variable Rate Notes of Cayman Islands-based Newton Re Limited.

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