# Floating rate instrument

- Canonical URL: https://www.gerhardmerk.de/floating-rate-instrument-2
- Post ID: 8074
- Modified: 2023-07-25T21:00:35+00:00
- Language: en

## Definition

Financial instrument for which the interest rate is reset at regular intervals on the basis of a reference index and thus adjusted to changes in short- or medium-term market interest rates (any category of debt instrument [such as a loan, bond, mortgage, or credit] that ensures not a fixed rate of interest over the lifespan of the instrument; such debt normally uses an index or other base rate for launching the interest rate for each proper period). In the case of floating-rate debt instruments, interest rates are fixed either in advance or in arrears. - See maturity risk, key interest rate, interest rate escalator clause. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1