Fixed Income
Floating-Rate Note
Definition
What is Floating-Rate Note?
A debt security whose coupon resets periodically using a reference rate plus or minus a spread.
Example in practice
How This Looks in Practice
A note pays the policy rate plus 2% and resets every quarter.
Keep learning
Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.