Floating-Rate Notes
Core floating-rate note terms for FRNs, VRNs, benchmark indexes, quoted spreads, and coupon reset mechanics.
Fixed-income guide to floating-rate notes, variable-rate securities, demand obligations, and capped or renewable reset structures.
Floating-rate notes and variable-rate securities pay interest that resets using a reference rate, formula, auction result, remarketing process, or demand feature. Reset mechanics can reduce price sensitivity to broad rate moves, but they do not remove credit risk, spread risk, liquidity risk, or documentation risk.
Use this branch when comparing floating-rate notes (FRNs), variable-rate securities, variable-rate demand obligations, auction rate securities, and capped or renewable structures. The core checks are the reset method, spread, reset frequency, caps, floors, fallback language, holder rights, liquidity support, and issuer credit quality.
For ordinary benchmark-plus-spread debt, start with Floating-Rate Note. For municipal structures with an investor put or tender feature, use Variable-Rate Demand Obligation. For securities whose rate and attempted resale depend on an auction, use Auction Rate Securities.
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Core floating-rate note terms for FRNs, VRNs, benchmark indexes, quoted spreads, and coupon reset mechanics.
Variable-rate securities and municipal demand obligations with benchmark resets, tender features, remarketing, and liquidity-support mechanics.