- drop-lock. // International Dictionary of Finance, 4th Edition;2003, p78
A definition of the term "drop-lock" is presented. It refers to the bond that earns a floating return but switches to a fixed return in case of rate of interest falling below a predetermined level.
- Indexed Put Bonds Attractive to Health Care Issuers. Walker, Susanne // Bond Buyer;2/24/2005, Vol. 351 Issue 32077, p6
The article reports that in recent months issuers in the health care sector have sold indexed put bonds as a way to obtain a floating interest rate security without the need for third-party credit enhancement, such as a letter of credit or insurance. Market participants note that the security is...
- Treasury Considers Floaters Amid Heavy Skepticism. Fairley, Juliette // Registered Rep Exclusive Insight;5/2/2012, p5
The article discusses the benefits of floating rate notes (FRNs) as U.S. Treasury's Domestic Finance undersecretary Mary Miller states in her quarterly refunding statement in May 2012 that she is studying the best terms. It explains that an FRN is a bond with a coupon rate linked to Treasury...
- New Forms of Bank Financing Are on the Rise. Bruton, Peter W. // Strategic Financial Planning;Spring2012, Vol. 7 Issue 2, p5
The article focuses on the shift of credit-worthy healthcare borrowers to direct bank loans and floating rate notes. It mentions that the trend to shift into such low-cost arrangements was driven by the trailing off of bond volumes and the uncertainty brought by the passage of the U.S....
- Wellman's 2nd Lien Sold On Three Desks. Burns, Mairin // Bank Loan Report;2/9/2004, Vol. 19 Issue 6, p1
Reports on the sale of a second lien loan by the polyester products company, Wellman Inc. to improve financial performance of the company. Sale of the lien loan which capitalizes on increased investor demand for unsecured, floating-rate debt; Long-term debt by the company; Danger of violating...
- ITC Deltacom Postpones Deal; Toys "R" Us Heads To HY. // High Yield Report;3/29/2004, Vol. 15 Issue 13, p4
ITC Deltacom Inc. officially postponed its Caa2/CCC+ rated $300 million two-part second priority, senior secured note offering last week, citing weak market conditions. The seven-year, non-call four, fixed-rate portion had been talked in the 11 percent area and the six-year, non-call two...
- Portuguese bonds: no more sales to foreigners. Jeffreys, Simon // Accountancy;Oct91, Vol. 108 Issue 1178, p59
Reports that the Portuguese central bank has banned the purchase of Portuguese floating rate bonds by foreigners. Reasons for the increase in foreign investors' purchase of bonds; Exemption from the ban of fixed-rate treasury bonds; Privatization program of the country.
- Short-Term Paper Demand Boosts Floating-Rate Securities. Maurice, Alex // Bond Buyer;05/08/2001, Vol. 336 Issue 31134, p8
Reports on impact of short term paper demand on the sale of synthetic floating-rate securities. Parts of the synthetic floating-rate receipts; Procedures in synthetic floating-rate receipts; Disadvantages of synthetic derivative securities.
- Are Floating-Rate Mortgages Best For Hotels? Corgel, John B.; Gibson, Scott // Real Estate Issues;Fall2004, Vol. 29 Issue 3, p33
Examines the time-series relation between hotel revenues and debt-service obligations based on periodic movements of interest rates. Importance of managing financial distress costs to the fixed-rate versus floating-rate decision; Connection between interest rates and hotel revenues; Procedure...