Derivatives

Callable Capped FRN

January 30, 2022
Accounting

Compound Instrument

January 30, 2022

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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.

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