Continuously refinanced short-term debt for a company's ongoing operations. The advantage of floating debt is that there is a chance to benefit from reductions in interest rates. In addition, interest rates on long-term debt are often higher than interest rates on short-term debt, so the company might be saving itself money by refinancing short-term debt as opposed to borrowing long-term. However, the downside is that the company might suffer if interest rates rise and they have to refinance at a higher cost.
Related information about floating debt:
- What is floating debt? definition and meaning - InvestorWords.com
Definition of floating debt: Continuously refinanced short-term debt for a company's ongoing operations. The advantage of floating debt is that there is a chance ...
- Floating Debt - Financial Dictionary - The Free Dictionary
Definition of Floating Debt in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Floating Debt? Meaning of Floating Debt as a ...
- floating debt - definition of floating debt by the Free Online Dictionary ...
(Economics) short-term government borrowing, esp by the issue of three-month Treasury bills. Want to thank TFD for its existence? Tell a friend about us, add a ...
- Floating Debt: Definition from Answers.com
Short-term obligation of a business that is continuously refinanced, such as bank loans due in one year and commercial paper.
- What is floating debt? - BusinessDictionary.com
Definition of floating debt: Short-term debt that is continually refinanced, renewed, or rolled over to meet ongoing operational requirements.
- What is FLOATING DEBT? - The Law Dictionary
Definition of FLOATING DEBT: By this term Is meant that mass of lawful and valid claims againstthe corporation for the payment of which there is no money in the ...
- The Grumpy Economist: Floating-rate Treasury Debt?
Apr 30, 2012 ... Bloomberg has an intriguing April 29 article on Treasury Floaters According to Bloomberg, the Treasury may announce on May 2 that it will ...
- floating debt - WordReference.com Dictionary of English
▷noun a debt which is repayable in the short term. Compare with funded debt. ' floating debt' also found in these Oxford entries: funded debt. Forum discussions ...