Glossary

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Reverse floater

forwarded from Bull floater

A Reverse floater floating rate bond, the interest rate of which is determined by the difference between a fixed rate and a reference interest rate. If the reference rate rises, the interest on the reverse floater declines, and vice versa (e.g. 10% minus 3-month Libor). In other words, the investor earns more interest if the reference rate sinks.

See alsoBond
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