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 ?
Axis Bank last sold dollar bonds in June 2007 when it raised USD60m from variable-rate notes that are due in 2022.
and PMC Commercial Trust are pleased to announce the completion of a joint structured loan sale transaction consisting of variable-rate notes issued by a newly formed joint venture and secured by a portfolio of their loans.
Ramaswamy and Sundaresan (RS) (1986) extend the earlier work by Cox, Ingersoll, and Ross (CIR) (1980) to develop models for the valuation of variable-rate notes incorporating coupon-averaging formulae and different contractual features that are normally observed in corporate floaters.
200,000,000 secured variable-rate notes at 'Asf'; Outlook Stable.
Most interest in the variable-rate notes has been from commercial paper conduits -- which buy long-term assets and issue commercial paper on the back of them -- as the assets will be high investment-grade.
It lends to buyers of its equipment on a fixed-rate basis, but borrows in the form of commercial paper and variable-rate notes.
DCR) has put Halyard Re's 'BB-' (Double-B-Minus) rated variable-rate notes on Rating Watch--Down.
200,000,000 secured variable-rate notes due 2025 at 'A+sf'; Outlook to Stable from Negative.
8 million series 2005B GO variable-rate notes and an 'F1+' rating to its approximately $260 million taxable GO working cash notes, series 2009A-1 and 2009A-2.
NEW YORK -- Fitch Ratings downgrades short-term ratings on 12 senior variable-rate notes from the following Federal Family Education Loan Program (FFELP) student loan program revenue bonds issued by Access to Loans for Learning Student Loan Corporation (ALLSLC).
The variable-rate notes are insurance-linked collateralized securities that will suffer a loss of principal if OCIL's aggregate insured losses exceed a specified threshold that varies by note class.
Based on Fitch's interpretation of the CNL 1998-1 transaction documents it was expected that losses from either the fixed or variable-rate collateral pool would be applied to only the corresponding fixed- or variable-rate notes.

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