Interest rate floor

Interest rate floors compare to interest rate caps in the same way that puts compare to calls.

Interest rate floor
An interest rate agreement in which payments are made when the reference rate falls
below the strike rate.
Related Terms: ...

interest rate floor
lower limit on the maximum possible interest rate an insurance company will pay. If the market interest rates are below that lower limit, the insurance company pays the lower limit rate.

interest rate floor - Related Articles
Managing Interest Rate Risk
Best Practice ...

INTEREST RATE FLOOR - The lowest interest rate possible under an ARM contract. Floors are less common t...
INTEREST RATE FUTURES - a legal commitment to sell financial instruments at a future price and date ...

Interest Rate Floor - The lowest rate to which the interest rate may drop on an adjustable rate loan.
Interest Rate Swap - The exchange between counter parties of a fixed interest rate and a floating interest rate in the same currency.

Interest Rate Floor
For an adjustable-rate mortgage (ARM), the minimum interest rate that could be charged, as specified in the mortgage note.

Interest rate floor
An interest rate agreement in which payments are made when the reference rate falls below the strike rate. Related: Interest rate cap
Interest rate on debt ...

Interest rate derivative
Interest rate derivatives
Interest Rate Derivatives (finance)
Interest Rate Differential
Interest rate floor
Interest rate floor
Interest Rate Future
Interest rate futures contract ...

Interest rate floor
Interest rate risk
Interest rate swap
Intermarket sector spread
Intermarket spread swaps
Internal market
Internal rate of return
Internally efficient market
International Depositary Receipt (IDR)
International market ...

an exchange where dealers meet face to face to conduct business. In contrast to screen-based trading systems or an over-the-counter (OTC) system. Floor can also refer to the price at which a stop loss order is activated or to an interest rate floor.

Interest rate ceiling See: Interest rate cap Interest rate floor An interest rate agreement in which payments are made when the reference rate falls below the strike rate. Related: Interest rate cap.

See also: Interest rate cap, Interest rate swap, Interest rate risk, Benchmark interest rate, Yield curve