floorlet
Meanings
noun
- 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.
Word forms
Etymology
From floor + -let.
This entry uses open data from Wiktionary (CC BY-SA/GFDL). Word forms are used for search and are not indexed as separate pages.