HONGKONGDIR

HOMECompaniesDictionaryFAQs

Home » Dictionary » Bonds » inverse floating rate note

Inverse Floating Rate Note

Definition
A debt instrument with a coupon rate that adjusts contrary to the movement of an interest rate index. Also referred to as inverse floater, they are better performers in a declining interest rate environment. As interest rates decline the coupon rate increases generating more income for the bondholder.

Nearby Terms
Similar companies
Copyright © 2013 hongkongdir.com All Rights Reserved.
Provides public information about companies in the Hong Kong.