Derivatives
Callable Capped FRN
January 30, 2022
Accounting
Compound Instrument
January 30, 2022

A floater (FRN: floating rate note) that can be called by the issuer before maturity date. In other words, It is a floater with a call option (embedded call provision) that gives the right to the issuer to redeem the note (bond) in a situation where interest rates move down, whereby negatively impacting the reference rate or required margin.

Leave a Reply

Your email address will not be published.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

Related Posts