a bond that pays a different coupon rate over time as interest rates change
A bond issue which pays a floating rate of interest, usually reset every 3 or 6 months.
A bond on which the coupon is refixed periodically according to some external market interest rate such as LIBOR.
Eurobonds with a rate of interest that varies from coupon period to coupon period. The rate is usually established as a margin over LIBOR.
a form of security, popular in the euromarkets and developed elsewhere, issued for three years and longer and carrying a variable interest rate which is adjusted regularly (at one to six monthly intervals - whatever is preferred by the issuer) by a margin against a benchmark rate such as LIBOR. Increased volatility in interest rates helped by the popularity of FRN's as borrowers and lenders became reluctant to commit funds for a fixed period at a fixed rate.
Debt instrument with a variable interest rate. Interest adjustments are made periodically and are tied to a money-market index such as Treasury Bill rates.
Borrowing at a pre-determined variable rate
Bond where each interest payment is made at the current market levels, often by reference to LIBOR.
Medium term loan stock in a company which pays interest that varies according to money market conditions; FRNs can be medium or long term or perpetual.
bond which pays a floating rate of interest. The rate of interest payable on the bond will be reset at regular intervals, for example, each three months or six months.
A fixed income security which has variable coupon rates, periodically changed according to the rise and fall of a certain interest rate index or a specific fixed income security which is used as a benchmark. Also known as a "floater".
Floating rate notes (FRNs) are bonds that have a variable coupon, equal to a money market reference rate, like LIBOR or federal funds rate, plus a spread. The spread is a rate that remains constant. Almost all FRNs have quarterly coupons, i.e. they pay out interest every three months, though counterexamples do exist.