Inverse floating rate note

A variable rate security whose coupon rate increases as a benchmark interest rate declines. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Inverse floating rate note — An inverse floating rate note, or simply an inverse floater, is a type of bond or other type of debt instrument used in finance whose coupon rate has an inverse relationship to short term interest rates (or its reference rate). With an inverse… …   Wikipedia

  • inverse floating rate note — Fin a note whose interest rate varies inversely with a benchmark interest rate …   The ultimate business dictionary

  • inverse floating-rate note — A variable rate security whose coupon rate increases as a benchmark interest rate declines. Bloomberg Financial Dictionary …   Financial and business terms

  • 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 - FRN — A note with a variable interest rate. The adjustments to the interest rate are usually made every six months and are tied to a certain money market index. Also known as a floater . These protect investors against a rise in interest rates (which… …   Investment dictionary

  • Inverse Floater — A bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. When the interest rate goes up the coupon payment rate will go down… …   Investment dictionary

  • Credit-linked note — A credit linked note (CLN) is a form of funded credit derivative. It is structured as a security with an embedded credit default swap allowing the issuer to transfer a specific credit risk to credit investors. The issuer is not obligated to repay …   Wikipedia

  • Interest rate derivative — An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.The interest rate derivatives market is the largest derivatives market in the… …   Wikipedia

  • Collateralized mortgage obligation — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Mortgage-backed security — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security …   Wikipedia

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