A bond (mostly issued by public-sector entities) with a debtor’s right to call the bond. This allows the issuer to redeem the issue early after a lock-up period on any interest date or to fix the interest rate again. The interest rate is usually determined on the basis of a reference interest rate. Recently, this has mostly been the 3-month EURIBOR. Floating-rate bonds do not include bonds that are provided with different interest rates at different times, such as federal savings notes. – Interest rate floaters can be structured in many different ways. In particular, caps and floors or an interest rate corridor can be specified in the bond terms and conditions. – See bond, rising-rate, bonbon, euro-bond, floater, floor, conversion bond, step-down bond. – See the Deutsche Bundesbank’s monthly statistical supplement “Capital Market Statistics” for the scope of issues and the explanatory notes for important definitions and classifications.
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