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.]

---

词条贡献者

译者Gloria，毕业于法国顶尖的高级翻译学院，擅长翻译各种与企业设立相关的法律文件。