A bond on which the interest rate depends upon an index with less than one payback ratio. The coupon rate is computed as: (k x reference rate) + quoted margin. The reference rate may be a treasury rate, Fed fund rate or London Interbank Offered Rate.
Related information about deleveraged floater:
- Deleveraged Floater Definition | Investopedia
A fixed-income instrument with a floating coupon rate that is a product of the reference interest rate, or index, and a leverage factor of less than one, plus a fixed ...
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Definition of deleveraged floater: A bond on which the interest rate depends upon an index with less than one payback ratio. The coupon rate is computed as: ...
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A deleveraged floater, which gives the investor decreased exposure to the underlying index, can be replicated by buying a pure FRN and entering into a swap to ...
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A deleveraged floater, which gives the investor decreased exposure to the underlying index, can be replicated by buying a pure FRN and entering into a swap to ...
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Deleveraged floater. It has a coupon formula where the ... Posted by humzakhan: All this is making me leave a Matured Deleveraged floater in my pants :S ...
- Cbonds.Info - CIS - Fixed income encyclopedia
If k is greater than 1, this bond is called leveraged floater, otherwise it is deleveraged floater. For example, the issue coupon formula can be as follows: Coupon ...
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A deleveraged floater, which gives the investor decreased exposure to the underlying index, can be replicated by buying a pure FRN and entering into a swap to ...
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Vocabulary words for CFA Level I SS15. Includes studying ...