Floating Rate
A floating rate is an interest rate that resets by formula against a benchmark, changing coupon payments as the reference rate moves.
Core floating-rate note terms for FRNs, floating rates, reset spreads, benchmark indexes, and coupon reset mechanics.
Core floating-rate notes are debt securities whose coupons reset with a market reference rate plus or minus a stated spread. Their prices are usually less sensitive to interest-rate changes than comparable fixed-rate bonds, but credit spreads, benchmark mechanics, reset lag, caps, floors, and liquidity still matter.
Use this branch when the main question is basic FRN mechanics. The key terms are floating rate, floating-rate note, reset index, spread, reset frequency, payment date, reference-rate fallback, and issuer credit quality.
For demand features, use VRN. For capped structures, use Capped Floating-Rate Note.
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A floating rate is an interest rate that resets by formula against a benchmark, changing coupon payments as the reference rate moves.
A floating-rate note pays interest that resets against a benchmark plus a spread, reducing fixed-rate duration while preserving credit and spread risk.
FRN stands for floating-rate note, a debt security whose coupon resets periodically using a benchmark rate plus or minus a spread.