A fixed income instrument which has a coupon rate or interest rate that varies with a short term interest rate index in such a way that the yield is inversely related to the market rate of interest. opposite of floater.
Related information about inverse floater:
- Inverse floating rate note - Wikipedia, the free encyclopedia
An inverse floating rate note, or simply an inverse floater, is a type of bond or other type of debt instrument used in finance whose coupon rate has an inverse ...
- Inverse Floater Definition | Investopedia
A bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest ...
- FLOATERS AND INVERSE FLOATERS
Five-year inverse floater. Semi-annual interest ... Pricing an inverse floater: Cash Flows per ... Note: Cash flows of floater plus inverse floater same as two 5% ...
- Inverse Floater - Risk Glossary
An inverse floater (or reverse floater) is a floater whose coupon fluctuates inversely with its reference rate—increasing when the reference rate decreases and ...
- Inverse Floater - Financial Dictionary - The Free Dictionary
Refers to a debt security whose value increases as interest rates rise, i.e. there is a direct price-yield relationship rather than the usual inverse price-yield ...
- Inverse Floater - My-Structured-Products.com
Inverse Floater (inverse floating rate note) product description.
- What Is an Inverse Floater?
An inverse floater is a variable-rate security whose coupon rate changes in a direction opposite to that of a specified short-term interest rate. When the short- term ...
- SuperDerivatives - Glossary - Inverse floater
An inverse floater swap is similar to a vanilla swap in that one of the legs can be based on either a fixed or a floating reference rate. The difference is in the ...