Capped FRN

From ACT Wiki
Revision as of 18:04, 27 June 2022 by imported>Doug Williamson (Classify page.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

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.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Capped_FRN&oldid=8277’