A type of capped floored floating rate note in which the floored coupon varies over the life of the note/ bond. An example is a bond that pays a floating coupon that is subject to a floor rate (say 3%) whose level is stepped from time to time: it adjusts by steps of 0.1% downward. This floating rate note helps an issuer adjust a previously set floor even lower depending on prevailing market rates at the time.
August 20, 2024
