variable-rate note

Variable-Rate Note

A bond with an interest rate that changes periodically. 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 variable-rate notes have maximum and minimum interest rates, known as capped notes and floored notes, respectively. A variable-rate note with both a maximum and a minimum interest rate is called a collared note. In the United States, government sponsored enterprises issue most variable-rate notes, while banks do the same in Europe. See also: Adjustable-rate mortgage.

variable-rate note

See floating-rate note.
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References in periodicals archive ?
For the empirical analysis, the general form of the risk premium p(0)i for a variable-rate note issued by firm i at the time of the issuance (t = 0) is assumed to be of the form:
Default risk, firm characteristics, and the valuation of variable-rate debt instruments
70 million variable-rate note due June 1, 2017 to 'BBB' from 'A-'.
Fitch Downgrades and Withdraws Alfa Group's Ratings
These may include the redemption of its senior variable-rate notes due 21 June 2012 or the redemption of the balance of the series D preferred shares held by the US Treasury.
-Deutsche Bank Securities to run Zions Bancorporation's USD200m debt offer
The variable-rate notes, issued last Thursday, mature in 2013 and benefit from an unconditional and irrevocable guarantee by the Danish government that ensures timely payment of interest and principal.
S&P assigns top rating on Danish Vestjysk Bank's USD500m notes on state guarantee
Axis Bank last sold dollar bonds in June 2007 when it raised USD60m from variable-rate notes that are due in 2022.
Axis Bank to offer dollar bonds
200,000,000 secured variable-rate notes at 'Asf'; Outlook Stable.
Fitch Affirms Signum Finance Cayman Limited Series 2010-09
1m) in variable-rate notes due on 20 March 2016, Reuters reported.
-Wuestenrot Bank sells EUR50m notes
The UK-based building society placed the variable-rate notes at par with a discount margin of three month-Libor plus 175 basis points.
-C Suisse, HSBC, RBC run Yorkshire's GBP500m note sale
5m) variable-rate notes maturing on 1 April 2015, Reuters reported.
-Westpac sells CHF275m of 3-yr bonds
5m) variable-rate notes at 130 basis points over BBSW.
-National Australia Bank sets price on AUD800m debt issue
200,000,000 secured variable-rate notes due 2025 at 'A+sf'; Outlook to Stable from Negative.
Fitch Affirms Signum Finance Cayman Limited Series 2010-09
Specifically, the Turkish lender has empowered its board to issue a TRY550m bank bond due 29 May 2012 and variable-rate notes worth TRY150m maturing on 27 November 2013.
-Turkish Isbank to sell TRY700m debt due 2012, 2013

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