floating debt


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Related to floating debt: Funded debt

Floating debt

Short-term debt that is renewed and refinanced constantly to fund capital needs of a firm or institution.

Floating Debt

Short-term debt that a company refinances continuously. A company may utilize floating debt instead of long-term debt because short-term loans have lower interest rates. Also, if interest rates fall, the company will be able to refinance at a lower rate to reduce its expenses. The risk of floating debt is the possibility that interest rates will rise, increasing the company's expenses.

floating debt

Short-term debt that is subject to continual refunding by the issuer.
References in periodicals archive ?
'Accordingly, the share of floating debt in total domestic debt increased to 57% at the end of March 2019 compared with 54% at the end of last fiscal year, while the share of permanent debt in the total domestic debt reduced to 26% at the end of March 2019 compared with 28% at the end of last fiscal year,' it said.
Domestic debt includes permanent debt, floating debt and unfunded debt, whereas the external debt consists of medium and long-term, short-term, and private non-guaranteed debt, loans from the IMF and foreign exchange liabilities.
"Some have been floating debt to keep their financial strength ratings up," he said.
His government successfully raised the equivalent of US$1.30 billion by floating debt in European markets denominated in euros.
The cash flow statement indicates whether the company is generating positive, free and clear, cash flow--and whether that cash flow is coming from company operations or from outside sources such as floating debt or equity.
Although Directors of the Treasury were more concerned with the need to address recurring budgets deficits and the huge floating debt, which they viewed as the cause of the fall of the franc, the Bank of France usually got its way with state authorities, including the Cartel des Gauches, mainly because its basic tenets were willy-nilly shared by all policy-makers.
The first is lower interest on floating debt. Second, there could be significant savings for retailers who refinance their public debt.
Suppose PIC pays base rate (the interest rate banks charge to their good customers) on its floating debt. PIC's interest expense each year will equal the base rate times $100 million.
If the manager believes that interest rates are going to rise significantly, he may want to swap for floating debt investments.
With a general objective to have a liability portfolio mix of 70 percent fixed debt and 30 percent floating debt, we may use derivatives to reach that goal.
As a result, the share of floating debt in the domestic debt increased from 37% in FY16 to 54% by June this year.
The rest of the cash will be generated through foreign project loans and grants, commercial loans for state trading in food and a floating debt from the State Bank of Pakistan.