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
In addition to the fixed-rate series 2014A, the system has $31.7 million currently outstanding 2004 series (fixed rate and not rated by Fitch) and a $12 million 2014B taxable variable-rate note, due in 2021, also not rated by Fitch.
Fitch Affirms Erlanger Health System (TN) 2014A Revs at 'BBB+'; Outlook Stable
Securities and Exchange Commission, has affirmed the rating on the principal-at-risk variable-rate notes issued by Azzurro Re I DAC, an Irish designated-activity company limited by shares authorized by the Central Bank of Ireland as a special purpose vehicle under the European Union (Insurance and Reinsurance) Regulations 2015 of Ireland.
Fitch Ratings affirms rating on notes issued by Azzurro
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
New York: Fitch Ratings affirms the rating on the principal-at-risk variable-rate notes issued by Azzurro Re I DAC, an Irish designated-activity company limited by shares authorized by the Central Bank of Ireland as a special purpose vehicle under the European Union (Insurance and Reinsurance) Regulations 2015 of Ireland, as follows:
Fitch Affirms Azzurro Re I DAC Catastrophe Notes at 'BB+ sf'; Outlook Stable
16 March 2012 - German lender Wuestenrot Bank sold on Thursday EUR50m (USD65.1m) 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
15 March 2012 -- A unit of Australian bank Westpac (ASX:WBC) yesterday sold CHF275m (USD295m/EUR226.5m) variable-rate notes maturing on 1 April 2015, Reuters reported.
-Westpac sells CHF275m of 3-yr bonds
13 December 2011 -- Australia's top lender National Australia Bank (ASX:NAB), or NAB, said today it had priced its AUD800m (USD807m/EUR611.5m) variable-rate notes at 130 basis points over BBSW.
-National Australia Bank sets price on AUD800m debt issue
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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