Reset Margin
The additional fixed spread above the index underlying a floating-rate security. Investopedia Says:
For example, if a floating-rate note has a rate based on LIBOR plus 0.5%, the 0.5% or 50 basis points would be the reference rate and would not change throughout the life of the note. Related Terms:
Basis Point - BPS
Bond
Discount Margin - DM
Floater
Floating-Rate Note - FRN
Initial Interest Rate
London Interbank Offer Rate - LIBOR
Reference Rate
Spread |