Glossary

Floating Rate Notes

Bonds offering variable interest rates.

A floating rate note is a fixed-rate security with variable interest rates. For specified periods, usually three to six months, the interest rate is adjusted to a reference rate such as the EURIBOR. The advantage for investors is that floating rate notes always offer a return linked to the current capital market situation. For this reason, the market prices of bonds with variable interest rates fluctuate much less than their conventional counterparts.

These bonds are also often called floaters.

All floating rate bonds in exchange trading can be displayed with the search on boerse-frankfurt.

Synonyme: Floaters

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