Finance

Stepped Spread Floater

November 22, 2021
Derivatives

Variable-Notional Swaption

November 22, 2021

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A debt instrument (note) which comes with a step-down coupon; the amount of its coupon decreases over time to maturity. In earlier periods, it pays a high coupon , and then in later periods it pays a lower coupon. This notes suits a low short-term rate environment. It might also be used for regulatory or tax purposes.

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