floating-rate note

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Also found in: Financial.
Related to Floating Rate Securities: Variable Rate Bond

floating-rate note

n
(Banking & Finance) a eurobond, often issued as a negotiable bearer bond, that has a floating rate of interest
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References in periodicals archive ?
These funds also seek to limit the maturity date of any single investment to 397 days with the exception of floating rate securities issued by highly rated sovereigns, supranationals, or government agencies benefiting from strong market liquidity, which could have maturities as long as 762 days.
One of the trends we've been advocating on behalf of our clients and also seen the industry taking up is the use of floating rate securities, securities whose coupon rather than being fixed, adjusts each month or each quarter off of a LIBOR [London Interbank Offered Rate] index.
Floating rate securities, for example, have their income returns tied to a particular measure of interest rates, such as LIBOR.
Alternative fixed income options include preferred shares and credit-focused fixed income such as floating rate securities, high yield debt and investment grade corporate bonds.
Brian Upbin, head of Benchmark Index Research, said 'The issuance of floating rate securities by the US Department of the Treasury is a significant and highly anticipated event for bond investors.
Head of Benchmark Index Research Brian Upbin commented "The issuance of floating rate securities by the US Department of the Treasury is a significant and highly anticipated event for bond investors.
"I think we are quite different from others because we are willing to sacrifice a bit of current yield and hold a fairly high percentage of our portfolio in floating rate securities precisely because we don't want to be in the interest rate forecasting business."
A statement the Treasury Undersecretariat said that the coupon payment of floating rate securities with a maturity date of October 10, 2014 is indexed to CPI.