Floating rate note

(FRN).

A bond, normally with a fixed maturity, where the interest coupon is adjusted at regular intervals reflecting the prevailing market rate (usually at a margin over a benchmark interest rate).

Sometimes known as a floating rate bond, or a 'floater'.

See also

• Benchmark
• Bond
• Capped FRN
• Convertible FRN
• Coupon
• Interest rate
• Margin
• Maturity
• Nominal bond
• Notes