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floater definition - finance
Debt securities that have a variable interest rate that is tied to another interest rate instrument, such as the 10-year U.S. Treasury note rate. A floating debt issue spreads the risk that interest rates will change unfavorably between the debt issuer and the debt purchaser.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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