A security based on borrowed funds with a variable interest rate that may be traded for another security of the same type with a higher rate of interest that does not change over the life of the security. The convertibility feature reduces investor risk from falling interest rates by allowing the note holder to lock in a rate of return.
Related information about convertible floating-rate note:
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A debt security with a floating interest rate that may be exchanged for another debt security with a higher, fixed interest rate. Most floating-rate notes expose ...
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Definition of convertible floating-rate note: A security based on borrowed funds with a variable interest rate that may be traded for another security of the same ...
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convertible floating-rate note · floating-rate bond · perpetual floating-rate note · capped floating rate note · Eurodollar floating-rate certificate of deposit · inverse ...
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Definition of convertible floating-rate note: A type of floating-rate note that can be converted to a fixed-rate note if interest rates decline. A floating-rate note is a ...
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Related Terms. London Interbank MEAN (LIMEAN) rate · equity swap · convertible floating-rate note · mismatch bond. Mentioned in these terms. floating rate ...
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convertible loan. convertible floating-rate note · mezzanine financing. Definition. Loan that entitles the lender (or the holder of loan debenture) to convert the loan ...
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convertible ARM · convertible collision insurance · convertible floating-rate note · convertible price · delayed convertible · convertible preferred stock · cumulative, ...
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convertible adjustable preferred stock (CAPS) · convertible bond · convertible currency · convertible exchangeable preferred stock · convertible floating-rate note ...