| Floater | |
 A bond or other type of debt whose coupon rate changes with market conditions (short-term interest rates). Also known as "floating-rate debt". |
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 For example, a floater bond may have the coupon rate set at "T-bill rate plus 0.5%". This type of instrument is more beneficial to the holder as interest rates are rising because it allows the holder to participate in the upward movement in rates. Conversely a floater is less advantageous to the holder when rates are decreasing because the rate at which they are receiving interest is declining. |
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 Advanced Bond Concepts - This detailed tutorial explains some of the more complex concepts and calculations you need to know for trading bonds, including bond pricing, yield, term structure of interest rates, duration, and much more. Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial. Forces Behind Interest Rates - Get a deeper understanding of the importance of interest rates and what makes them change. Trying To Predict Interest Rates - Understand the various factors that influence them so you can learn to anticipate their movements for profit. |
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