Corporate Bonds » Discount Notes

Risks of Floating Rate Notes

admin — Thu, 08 Jul 2010 21:31:28 +0000

Risks of Floating Rate Notes #1: Interest Rate Risk While the market value of Floating Rate Notes or floaters are relatively insensitive to changes in interest rates, the income received are, highly dependent upon the level of the reference rate over the life of the Floating Rate Notes investment. Total return of Floating Rate Notes [...]

Risks of Floating Rate Notes is a post from: Corporate Bonds

Who Invests in Floaters

admin — Tue, 22 Jun 2010 13:04:40 +0000

Investors should consider their need for steady income when investing in Floating Rate Notes or floaters because a decline in the benchmark used, will result in a lower interest payment. Floating Rate Notes or floaters are most suitable for purchasing and holding until maturity, but if necessary to sell prior to that, a secondary market [...]

Who Invests in Floaters is a post from: Corporate Bonds

Benefits of Floating Rate Notes

admin — Fri, 12 Mar 2010 13:53:52 +0000

What are the benefits of Floating Rate Notes or floater? Value in a Rising Interest Rate Environment An investor who believes interest rates are on the rise may not want to commit to a current fixed rate for the long term investment. Conversely, short term inertness rates may also not meet an investor's expectations. Floating [...]

Benefits of Floating Rate Notes is a post from: Corporate Bonds

Floating Rate Notes

admin — Sun, 15 Nov 2009 02:41:04 +0000

Q: What are Floating Rate Notes? A: Floating Rate Notes or Floaters, are debt securities that adjust or float periodically against a benchmark rate such as the Treasury Bill, the Consumer Price Index (CPI) or the London Interbank Offer Rate (LIBOR). Who issue floating rate notes? Floating rate notes or Floaters are issued by corporations [...]

Floating Rate Notes is a post from: Corporate Bonds

Agency Notes

admin — Sat, 24 Oct 2009 01:18:15 +0000

Agency Discount Notes - FAQs II 6. How are Agency discount note yields quotes? Agency Discount Notes are quoted in terms of a discount yield, the same way as Treasury Bills. Agency Discount Notes can provide a significant yield advantage over Treasury Bills, as shown, for example: US T Bills Agency Discount Notes [...]

Agency Notes is a post from: Corporate Bonds

Agency Discount Notes

admin — Wed, 03 Jun 2009 13:42:28 +0000

Agency Discount Notes � FAQs 1. What are Agency Notes? Agency Notes are debt instruments by U.S. government sponsored enterprises raise capital for their operations. Examples such enterprises include: Fannie Mae (FNMA) Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac) Federal Home Loan Banks (FHLB) Federal Farm Credit Banks (FFCB) 2. Are Agencies' credit [...]

Agency Discount Notes is a post from: Corporate Bonds

Discount Notes

admin — Sun, 05 Apr 2009 19:17:36 +0000

Federal Agency Discount Notes Similar to Treasury Bills, Agency Discount Notes are issued by Federal Agencies at a discount to their maturity value (hence they are called discount notes). Discount notes are sometimes called Federal Agency Discount Notes. What is an agency discount note? An agency discount note is a short term investment alternative, typically [...]

Discount Notes is a post from: Corporate Bonds

Corporate Bonds And Notes

admin — Fri, 30 May 2008 00:29:58 +0000

Question: How do you Translating Words into Equations? 6. An automobile dealer has $750,000 worth of inventory in luxury cars and midsize cars. The profit on a luxury car is 32% and the profit on a midsize car is 22%. The profit for the entire stock is $195,000. How much inventory (in dollars) does the [...]

Corporate Bonds And Notes is a post from: Corporate Bonds