Floating-rate note
A bond whose coupon floats with a money market rate.
How to read the number
The price of such a bond barely reacts to rate moves: the coupon adjusts instead of the quote.
When the metric lies
Also known as: floating coupon bond
A bond whose coupon floats with a money market rate.
The price of such a bond barely reacts to rate moves: the coupon adjusts instead of the quote.
Also known as: floating coupon bond