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.
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.
We are also pleased that the transaction significantly enhances our fixed to floating debt mix, reducing our floating interest rate exposure.
MCH uses derivatives to manage fixed versus floating debt mix, manage the relationship between assets and liabilities, and hedge certain risks.
The proceeds were used to pay off $110 million of senior floating debt and $10 million of mezzanine debt previously encumbering the center.
Nevertheless, as floating debt comprises just under 10% of total book capitalization, Archstone continues to be well insulated against interest rate volatility.
Our balance sheet now includes a mix of fixed and floating debt," Weiss said.
At BankAmerica he directed the origination, structuring and underwriting of floating debt rate products throughout the US, Canada, Latin America, Europe and Asia.
Because of our interest rate swap agreements, we will be able to maintain a ratio of fixed to floating debt of approximately one-to-one after this transaction.
Foreign exchange and floating debt is significant, but it is actively managed through a sophisticated debt management program.