Floating interest rates: related pages

An interest rate that is set in advance and does not change depending on external factors.

Although interest rates may appear to be straightforward, they may be quoted and calculated in a number of different ways.

This is the financial risk to which a portfolio or institution is exposed to if interest rates change.

The difference between the rate of return on a security (or a market or an investment) and the risk free rate of return.

1) The amount of a loan (or bond) excluding interest, 2) An entity for whom an agent acts.

Structured notes are bonds that contain embedded derivatives.

An agreement to exchange one stream of cash flows for another, often used to switch currencies and interest rates (fixed vs floating).

A hybrid security or hybrid instrument is a security that has characteristics of both debt and equity.

A bond is a security that pays interest. The majority of bonds have a fixed life at the end of which the principal is returned.