Corporate Bonds » floating rate 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 may be [...]

Risks of Floating Rate Notes 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 Rate Notes or floaters [...]

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 or agencies such [...]

Floating Rate Notes is a post from: Corporate Bonds