Capped and Renewable
Capped, floored, and renewable variable-rate debt structures that change coupon upside, reset exposure, and reinvestment risk.
Fixed-income guide to FRNs, VRNs, floating-rate notes, variable-rate bonds, demand notes, and capped floating-rate notes.
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 FRNs, VRNs, demand notes, capped structures, and other short-reset securities. The core checks are the reset index, margin, reset frequency, interest-payment dates, caps, floors, fallback language, liquidity support, and issuer credit quality.
For the basic mechanics, start with Floating-Rate Note. For structures with investor put or demand features, use the variable-rate demand branch.
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Capped, floored, and renewable variable-rate debt structures that change coupon upside, reset exposure, and reinvestment risk.
Core floating-rate note terms for FRNs, floating rates, reset spreads, benchmark indexes, and coupon reset mechanics.
Variable-rate demand and short-term fixed-income securities with frequent resets, tender features, remarketing, and liquidity-support mechanics.