floater
1
9.1
A bond with an interest rate that changes over time
- noun
- /ˈfloʊtər/
- Specialized
:
bono a tasa variable
- The new bonds the government issued are classified as floaters due to their variable interest rates.
Examples
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My business was primarily floaters, ARPs, commercial paper, and CMOs in those days because the writing was on the wall.
Blog text (22) -
Floaters would expand the market for government debt.
Blog text (32) -
Why would Treasury want to issue floaters?
Blog text (32) -
But the Treasury floaters, by contrast, seem to anticipate using an overnight rate to calculate the periodic interest payment.
Blog text (32) -
Investors are increasingly interested in floaters, as they adjust to changes in interest rates.
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She decided to invest in a portfolio that included floaters to benefit from the fluctuating market conditions.
How Variable
Surface Forms
Morphology
Etymology
Floater comes from the verb float, which means 'to move or change'. In finance a floater is a loan or bond whose interest rate 'floats' and changes with the market, which is why it has that name.