Finance
Perpetual Floater
July 31, 2021
Derivatives
Flat Rate Forward
July 31, 2021

A floater that that has no redemption date (maturity date), i.e., whose principal never matures. The note only has perpetual coupon payments which reset periodically on a fixing date based on some reference rate such as 3-mont or 6-month LIBOR.

Perpetual floaters are, by nature, debt instruments. However, the perpetual status brings them closer to the class of equity instruments.

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