inverse floating rate note

A note structured in such a way that its interest rate moves in the opposite direction from the underlying index (such as the London Interbank Offer Rate).

• Many such notes are risky investments because if interest rates rise, the securities lose their value and their coupon earnings fall.

— Also termed inverse floater. [Cases: Interest 32. C.J.S. Interest and Usury; Consumer Credit § 38.]

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词条贡献者

译者Eugina，毕业于一所旨在培养高级翻译专业人才的翻译院校，擅长翻译涉及国防和军工领域的法律文件。