Floorlet Definition

noun
(finance) A component of an interest rate floor, a derivative instrument that effectively prevents the interest payments on an otherwise variable-rate loan from falling below an agreed level (the "floor"). Each "floorlet", analysable as a put option, covers one interest accrual period (such as three months); the whole interest rate floor is made up of a series of consecutive floorlets.
Wiktionary

Other Word Forms of Floorlet

Noun

Singular:
floorlet
Plural:
floorlets

Origin of Floorlet

  • floor +‎ -let

    From Wiktionary

Find Similar Words

Find similar words to floorlet using the buttons below.

Words Starting With

Words Ending With

Unscrambles

floorlet