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 ?
Some insurers may be floating debt offerings because interest rates are low.
While the extraordinary restructuring of bilateral credits through the Paris Club will result in substantial reduction in foreign exchange payments during the grace period, the reduction in floating debt will relieve some pressure from the government in terms of reduced interest payments on domestic debt.
Optimized mix of fixed versus floating debt to protect against rising interest rates
Commercial paper can be an important tool in attaining a target floating debt level and medium-term notes are perfectly suited to slotting in debt maturities in years where room exists based on liquidity policy.
It says that the floating debt registered a substantial rise during 1995-96 mainly for cash balance replenishment adding that floating debt accounted for 39.
The trust consists of 80% taxable auction rate debt and 20% floating debt.
According to State Bank of Pakistan (SBP) the government's overall stock of domestic debt and liabilities comprising permanent debt floating debt unfunded debt and foreign currency loans posted an increase of 14 percent during the financial year 2014.
MCH uses derivatives to manage fixed versus floating debt mix, manage the relationship between assets and liabilities, and hedge certain risks.
The government's short-term floating debt policy has hampered the liquidity of the long-term debt market, besides restricting development of bench-mark bonds.
Nevertheless, as floating debt comprises just under 10% of total book capitalization, Archstone continues to be well insulated against interest rate volatility.
Floating debt including treasury bills and MTB have reached to Rs 3.
At BankAmerica he directed the origination, structuring and underwriting of floating debt rate products throughout the US, Canada, Latin America, Europe and Asia.