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.
Mentioned in ?
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
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
and PMC Commercial Trust are pleased to announce the completion of a joint structured loan sale transaction consisting of variable-rate notes issued by a newly formed joint venture and secured by a portfolio of their loans.
PMC Capital, Inc. and PMC Commercial Trust Sell $92.9 Million of 'Aaa' Rated Notes Through a Structured Loan Sale Transaction
200,000,000 secured variable-rate notes at 'Asf'; Outlook Stable.
Fitch Affirms Signum Finance Cayman Limited Series 2010-09
Most interest in the variable-rate notes has been from commercial paper conduits -- which buy long-term assets and issue commercial paper on the back of them -- as the assets will be high investment-grade.
S&P: 1st Rated Revolver Embedded in a Securitization
It lends to buyers of its equipment on a fixed-rate basis, but borrows in the form of commercial paper and variable-rate notes.
Xerox to Use Internet-Based Auction Platform for Swap Trading
DCR) has put Halyard Re's 'BB-' (Double-B-Minus) rated variable-rate notes on Rating Watch--Down.
DCR Places Halyard Re Notes on Rating Watch--Down
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
8 million series 2005B GO variable-rate notes and an 'F1+' rating to its approximately $260 million taxable GO working cash notes, series 2009A-1 and 2009A-2.
Fitch Downgrades Regional Transportation Authority, IL to 'AA-'; Outlook Negative
NEW YORK -- Fitch Ratings downgrades short-term ratings on 12 senior variable-rate notes from the following Federal Family Education Loan Program (FFELP) student loan program revenue bonds issued by Access to Loans for Learning Student Loan Corporation (ALLSLC).
Fitch Downgrades Access to Loans for Student Loan Corp. Ser II Indenture Sr Notes
The variable-rate notes are insurance-linked collateralized securities that will suffer a loss of principal if OCIL's aggregate insured losses exceed a specified threshold that varies by note class.
Fitch Revises Ratings on Avalon Re Class B and C

Financial browser ?
Full browser ?