Filter by Categories
Accounting
Banking

Finance




High-Low FRN


A floating rate note (FRN) which is designed as a yield enhancement instrument. It has a premium rate that is equal to a reference index rate (market rate), subject to a cap level. If the market rate increases beyond the cap rate, the note turns into a reverse floating rate note. The floating rate note’s yield decreases as the market rate appreciates.

This note is typically sought by investors who expect floating rates would only stage a modest increase over the span of the instrument.



ABC
Finance, as a field of knowledge, is substantially wide-ranging and virtually encompasses everything in the realm of corporate finance, financial management, ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*