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Leveraged Inverse Floater


An inverse floater whose coupon moves inversely with respect to interest rates by more than one for one. The floater is equipped with a coupon leverage– i.e., the reference rate’s multiplier that exceeds one. The magnitude of interest rate changes is more than proportionate, meaning that the effect on coupon payment will be multiplied by the coupon leverage.



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Finance, as a field of knowledge, is substantially wide-ranging and virtually encompasses everything in the realm of corporate finance, financial management, ...
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