Capped FRN: Difference between revisions
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A floating rate note (FRN) 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. | 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. | ||
Revision as of 21:40, 13 November 2017
A floating rate note (FRN) 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.
