floating rate
Moving loan percentage
A floating rate is an interest rate that adjusts periodically based on a benchmark or index, rather than staying fixed for the life of a loan or investment.
Mortgages, bonds, and other financial instruments may carry floating rates that rise or fall with market conditions: Her student loans had a floating rate tied to LIBOR.
Also called variable rate or adjustable rate.
Headwear or upper limits
Exchange one for another
- bondBinding tie or connection
- noteShort written record
- mortgageSecured home loan
- loanBorrowed money repaid later
derivative · security · line of credit · term loan · revolving credit · preferred stock
One who takes temporarily
- lenderOne who loans money
- principalChief school administrator
- amortizationGradual debt reduction schedule
- repaymentGiving back what's owed
underwriting · creditworthiness · covenant · default · collateral · secured · unsecured · origination
Prone to fluctuation
- flexibleAble to bend freely
- fluctuatingShifting irregularly over time
- periodicOccurring at intervals
- resetRestore to original state
adjustment · revisable · changeable · dynamic · amendable · modifiable · alterable · scalable
Noncommittal maneuvering
- yield curveRates plotted against maturities
- credit riskPotential for borrower nonpayment
- exposureState of being unprotected
- durationLength of existence
LIBOR
Interbank lending benchmark rate
caps
Headwear or upper limits
margin · basis points · index-linked · pegged · repricing
swap
Exchange one for another
loan · derivative · security · line of credit · term loan · revolving credit · preferred stock
borrower
One who takes temporarily
- lenderOne who loans money
- principalChief school administrator
- amortizationGradual debt reduction schedule
repayment · underwriting · creditworthiness · covenant · default · collateral · secured · unsecured · origination · term
variable
Prone to fluctuation
- flexibleAble to bend freely
- fluctuatingShifting irregularly over time
- periodicOccurring at intervals
reset · adjustment · revisable · changeable · dynamic · amendable · modifiable · alterable · scalable · elastic
hedging
Noncommittal maneuvering
- yield curveRates plotted against maturities
- credit riskPotential for borrower nonpayment
- exposureState of being unprotected
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- interest ratesinterest, interest charge, interest income, interest payments, compound interest
- forexforex, currency trading, currency exchange, foreign exchange, bid price
- forex eventsdevaluation, revaluation, currency crash, currency speculation, currency reform
- currencydollar, euro, pound, yen, peso
- moneydollar, euro, coin, cash, pound
floating ratefixed rate
Unchanging interest percentage
fixed APR · fixed-rate mortgage · fixed-rate loan · flat rate
float, floated, floats, floater, floaters, floating, afloat, rate, rates