(redirected from floaters)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia, Wikipedia.
Related to floaters: retinal detachment


A bond whose interest rate varies with the interest rate of another debt instrument, e.g., a bond that has the interest rate of the Treasury bill +.25%.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Fairway Bond

A bond with a coupon that is linked to some short-term benchmark interest rate. That is, a fairway bond carries a variable interest rate that changes according to a specified short-term interest rate. For example, a fairway bond may have a coupon of LIBOR + 0.5%. When investors believe interest rates will soon rise, they have an incentive to stay out of the bond market because their return would be locked at the lower interest rate. Fairway bonds reduce this incentive by allowing investors to take advantage of higher interest rates as they occur. A fairway bond is also called a floater. See also: Inverse floater.

Floating-Rate Note

A bond with a variable interest rate. 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 FRNs have maximum and minimum interest rates, known as capped FRNs and floored FRNs, respectively. An FRN with both a maximum and a minimum interest rate is called a collared FRN. In the United States, government sponsored enterprises issue most FRNs while banks do the same in Europe. See also: Adjustable-rate mortgage.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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 ?
I am very conscious of how busy our eye departments are, and I do not believe they would appreciate practitioners sending every case of flashes and floaters to them without appropriate investigation.
After three months, researchers found that out of the 120 subjects in Group 1 of Experiment 1 who took part, only 35 still reported having eye floaters, meaning that 70.8 percent had noted an improvement.
The garbage is cleaned up periodically by oceanic "garbage trucks" - ships that visit the floater and collect the garbage trapped by the floater.
There's no reason to become preoccupied with your typical, innocent floaters, but you should keep alert for more worrisome visual symptoms.
The Vitreous Floaters Symptom Questionnaire and psychological evaluation were done before ophthalmologic examinations.
We also warned junk shops not to accept floaters or any parts of the assembly, he said.
The solution to these problems, especially when the objects involved are valuable or sensitive to mishandling, may be to secure a true installation floater policy.
Floaters commonly occur in people who are near-sighted, middle-aged, have diabetes, have undergone cataract surgery or laser treatment.
My husband had a very large floater which blurred his vision.
Floaters commonly occur when some of the vitreous separates from the retina.