Capped FRN: Difference between revisions
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imported>Administrator (CSV import) |
imported>Doug Williamson m (Spacing) |
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An issue with an upper limit on the coupon rate. Under this type of issue, the lender forgoes the possibility of receiving a return above the cap rate should the market interest rate exceed the cap rate. | An issue with an upper limit on the coupon rate. | ||
Under this type of issue, the lender forgoes the possibility of receiving a return above the cap rate should the market interest rate exceed the cap rate. | |||
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* [[Floating rate note]] | * [[Floating rate note]] | ||
* [[Issue]] | * [[Issue]] | ||
Revision as of 04:57, 3 August 2013
An issue with an upper limit on the coupon rate.
Under this type of issue, the lender forgoes the possibility of receiving a return above the cap rate should the market interest rate exceed the cap rate.
