Floating rate

Floating rate defines the variable interest rate of bonds, which adjusts based on changes in a benchmark index like LIBOR.

Floating rate max %

The Floating rate max is the highest possible coupon rate that a floating or variable rate bond can pay. It effectively sets a cap on the bond’s interest payments, ensuring that the coupon will not exceed this maximum percentage, even if market interest rates rise significantly. The coupon ceiling protects the issuer from paying excessively high interest rates if market rates spike.

Floating rate min %

The Floating rate min is the lowest possible coupon rate that a floating rate bond can pay. In other words, even if the floating interest rate (based on a benchmark like LIBOR or SOFR) drops below a certain level, the bond's coupon payment will not fall below the predefined minimum percentage. It ensures that the investor receives at least the floor percentage in coupon payments, protecting against extremely low interest rates.