Floating rate

  A rate of exchange that is completely determined by market forces with no floor or ceiling. Rate may be tied to other rates that have volatility (Fed Funds, Prime, etc.).

International financial encyclopaedia . 2014.

Look at other dictionaries:

  • floating rate — interest rate that is reset periodically, usually every couple of months or sometimes daily. Bloomberg Financial Dictionary A rate of interest which varies over time, depending on market rates of interest. Dresdner Kleinwort Wasserstein financial …   Financial and business terms

  • floating rate — / fləυtɪŋ reɪt/ noun 1. same as variable rate 2. an exchange rate for a currency which can vary according to market demand, and is not fixed by the government …   Dictionary of banking and finance

  • floating rate — Fin an interest rate that is not fixed and which changes according to fluctuations in the market …   The ultimate business dictionary

  • Floating rate note — 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.… …   Wikipedia

  • floating rate note — see note Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. floating rate note …   Law dictionary

  • Floating rate notes —   [ fləʊtɪȖ reɪt nəʊts, englisch], Abkürzung FRN, Kurzwort Floater [ fləʊtə, englisch], zinsvariable Anleihen, mittel bis langfristige Schuldverschreibungen, deren Verzinsung in bestimmten Abständen meist alle drei oder sechs Monate an die… …   Universal-Lexikon

  • floating-rate note — ( FRN) A medium term instrument with a coupon rate that floats up or down based upon changes to an index or reference rate. Often, FRNs are tied to LIBOR. American Banker Glossary ( FRN) note whose interest payment ( interest payments) varies… …   Financial and business terms

  • floating rate note — ( FRN) A 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. Dresdner Kleinwort Wasserstein financial glossary * * * floating rate …   Financial and business terms

  • Floating Rate Notes — Als Floater (Floating Rate Note, FRN) bezeichnet man eine Anleihe mit variabler Verzinsung, die an einen Referenzzinssatz wie zum Beispiel alle 3/6 Monate an den Libor oder Euribor gekoppelt wird. In manchen Fällen wird zusätzlich ein… …   Deutsch Wikipedia

  • floating-rate note — FRN A eurobond with a floating rate interest, usually based on the London Inter Bank Offered Rate. They first appeared in the 1970s and are usually issued as negotiable bearer bonds. A perpetual FRN has no redemption. A capped FRN is one with a… …   Accounting dictionary

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