Inverse floater

Inverse floater Derivative whose coupon rate moves in an inverse manner to the market interest rate.

INVERSE FLOATER - A variable rate security whose coupon rate changes in the opposite direction from the change in the reference rate used to calculate the coupon rate.

Inverse Floater: A type of fixed income instrument. Investment Banks are firms that assist companies in initial sale of securities in primary market.

Inverse Floater: An inverse floater is a type of security with a coupon that periodically resets at a higher rate when market interest rates fall and resets at a lower rate when market interest rates rise.

inverse floater A CMO tranche that pays an adjustable rate of interest that moves in the opposite direction from movements in a representative interest rate index such as the London Interbank Offered Rate (LIBOR), ...

Inverse Floater A security (e.g. a tranche of a CMO - collateralised mortgage obligation) that pays an interest rate which is inversely related to a floating reference rate i.e. the interest rate rises as the reference rate falls, and vice versa.

Inverse floater A derivative instrument whose coupon rate is linked to the market rate of interest in an inverse relationship. Inverse floating-rate note A variable-rate security whose coupon rate increases as a benchmark interest rate declines.

(``Inverse Floater")-A REMIC class that pays an interest rate that adjusts periodically in the opposite direction of a specific index. Inverse floater adjustments may also be based on a multiple of the index.

Inverse Floater A Floating Rate Note with a coupon that decreases as the underlying index rate increases (e.g., a simple Inverse Floater's coupon rate might be 11.5% minus LIBOR).

Reverse floater A sometimes volatile mortgage-backed bond whose yield fluctuates in the opposite direction of interest rates in general. Also called an inverse floater. Back to Top ...

inverse floater A fixed income instrument which has a coupon rate or interest rate that varies... inverse relationship A relationship between two numbers in which an increase in the value of one...

See also: Offer, Security, Interest Rate, Investment, Bond