Derivatives
Reverse Snowball
July 1, 2021
Finance
Autocall Absolute Return
July 1, 2021

A floating-rate note in which the coupon is activated (knocked-in) or deactivated (knocked-out) if the reference interest rate exceeds or falls below a prespecified barrier level. This instrument allows investors to take a view on the movement of interest rates relative to a desired threshold level, after which coupon payment (whether payable or receivable) becomes effective.

A barrier floating-rate note is also known as a barrier floater.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts