A floating-rate note (FRN) in which the coupon moves inversely to the movement of the reference rate. That is, if the reference rate moves down, the coupon payment of a bull FRN increases, and if the reference rate moves up, the coupon payment decreases. A practical example of a bull FRN is the Lira-denominated one issued by the World Bank in December 1997 with a maturity of 12 years. For the first four years, rates were set on a decreasing scale from 12% down to 7%. For the next sever years the rate was specified by this formula: 15.5% – 2% × LIBOR. This formula implies that when reference rate rises, rates fall and vice versa.

A bull FRN is also known as an inverse FRN or a reverse FRN.