Floating-Rate Note - FRN

Floating-Rate Note - FRN
A note with a variable interest rate. The adjustments to the interest rate are usually made every six months and are tied to a certain money-market index.

Also known as a "floater".

These protect investors against a rise in interest rates (which have an inverse relationship with bond prices), but also carry lower yields than fixed notes of the same maturity. It's essentially the same concept as an adjustable-rate mortgage, except FRNs are investments (not debt).


Investment dictionary. . 2012.

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  • Floating-rate note (FRN) — Note whose interest payment varies with short term interest rates. The New York Times Financial Glossary …   Financial and business terms

  • Floating Rate Note (FRN) — ⇡ Anleihe mit variabler Verzinsung und einer Laufzeit zwischen fünf und zehn Jahren. Die Verzinsung wird regelmäßig, i.d.R. halbjährlich abhängig von einem ausgewählten Geldmarktzins (⇡ Referenzzinssatz) festgelegt. Dazu kommt ein von der Bonität …   Lexikon der Economics

  • floating-rate note — ( FRN) A medium term instrument with a coupon rate that floats up or down based upon changes to an index or reference rate. Often, FRNs are tied to LIBOR. American Banker Glossary ( FRN) note whose interest payment ( interest payments) varies… …   Financial and business terms

  • floating rate note — ( FRN) A bond which pays a floating rate of interest. The rate of interest payable on the bond will be reset at regular intervals, for example, each three months or six months. Dresdner Kleinwort Wasserstein financial glossary * * * floating rate …   Financial and business terms

  • Floating rate note — Floating rate notes (FRNs) are bonds that have a variable coupon, equal to a money market reference rate, like LIBOR or federal funds rate, plus a spread. The spread is a rate that remains constant. Almost all FRNs have quarterly coupons, i.e.… …   Wikipedia

  • floating-rate note — FRN A eurobond with a floating rate interest, usually based on the London Inter Bank Offered Rate. They first appeared in the 1970s and are usually issued as negotiable bearer bonds. A perpetual FRN has no redemption. A capped FRN is one with a… …   Accounting dictionary

  • floating-rate note — FRN A eurobond with a floating rate interest, usually based on the London Inter Bank Offered Rate They first appeared in the 1970s and have a maturity of between 7 and 15 years. They are usually issued as negotiable bearer bonds. A perpetual FRN… …   Big dictionary of business and management

  • capped floating-rate note — capped FRN See: floating rate note …   Accounting dictionary

  • Floating Rate Notes — Als Floater (Floating Rate Note, FRN) bezeichnet man eine Anleihe mit variabler Verzinsung, die an einen Referenzzinssatz wie zum Beispiel alle 3/6 Monate an den Libor oder Euribor gekoppelt wird. In manchen Fällen wird zusätzlich ein… …   Deutsch Wikipedia

  • Floating Rate notes — Als Floater (Floating Rate Note, FRN) bezeichnet man eine Anleihe mit variabler Verzinsung, die an einen Referenzzinssatz wie zum Beispiel alle 3/6 Monate an den Libor oder Euribor gekoppelt wird. In manchen Fällen wird zusätzlich ein… …   Deutsch Wikipedia

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