(redirected from capper)
Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia.


An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM). Also, an OTC derivatives contract consisting of a series of European interest rate call options; used to protect an issuer of floating-rate debt from interest rate increases. Each individual call option within the cap is called a caplet. Opposite of a floor.


1. Informal for market capitalization.

2. In a floating-rate note or an adjustable-rate mortgage (ARM), the highest possible interest rate. For example, if one has an adjustable-rate mortgage on a house, the interest rate fluctuates periodically. However, if the homeowner has a cap on the interest rate, there is a guarantee that it will never rise above a certain percent, no matter what the ARM formula would otherwise dictate. A cap is designed to protect the person or company making the interest payments. See also: Floor, Collar.


1. An upper limit on the interest rate to be paid on a floating-rate note.


A cap is a ceiling, or the highest level to which something can go.

For example, an interest rate cap limits the amount by which an interest rate can be increased over a specific period of time. A typical cap on an adjustable rate mortgage (ARM) limits interest rate increases to two percentage points annually and six percentage points over the term of the loan.

In a different example, the cap on your annual contribution to an individual retirement account (IRA) is $4,000 for 2006 and 2007 and $5,000 in 2008, provided you have earned at least that much. If you're 50 or older, you can make an additional catch-up contribution of $1,000 each year.




A ceiling on the adjustments that can be made in the payments or interest rate of an adjustable-rate loan.


Same as Float-Down.

References in periodicals archive ?
However, it is unclear what impact the deal will have on Capper & Co staffing levels, particularly head office personnel at Talbot Green.
Rather than affirming like Murray that the personal is the political, Capper reverses the dynamic by showing how the political becomes personalized through Fuller's commitment to public issues.
But just how widespread and accessible heroin was to get hold of came as a huge shock to Capper.
Capper "garnered extensive experience in the diabetes industry during his tenure at Bayer and CCS Medical and has an understanding of our distribution channels as well as operations and supply chain management," says Home Diagnostics chairman George Holley.
The "public years" Capper covers in this volume number only ten, but they encompass one trailblazing achievement after another: between 1840 and 1850, Fuller edited the Transcendentalist journal The Dial, instituted a series of "Conversations" for women, and wrote the first American book about women.
We have been getting tremendous interest," says Capper.
Capper insists the new version has been well-received by consumers.
Spanish news outlet, the Olive Press, quoted investigation sources as saying that Porter worked for Capper and his dad, Frank Capper - a millionaire property developer - in a security capacity.
These components enable the C500PB capper to handle hazardous locations by prohibiting any sparks to ignite or be exposed into the atmosphere, reducing the risk of a fire.
Erdington mother, Kerry Capper, complains that she and her one-time cancer patient daughter, aged seven, have been harshly treated by Pagett Primary School.
Geoffrey Capper, 68, died in a blaze at a property on Acton Street, Middlesbrough, in the early hours of Saturday.