floating-rate note (FRN)

简明释义

浮动利率本票

英英释义

例句

1.The yield on a floating-rate note (FRN) adjusts periodically based on market interest rates.

浮动利率票据 (FRN)的收益率会根据市场利率定期调整。

2.A floating-rate note (FRN) can be a good option for those looking to hedge against inflation.

浮动利率票据 (FRN)可能是那些希望对冲通货膨胀的人们的一个不错选择。

3.A floating-rate note (FRN) is typically less sensitive to interest rate changes compared to fixed-rate bonds.

浮动利率票据 (FRN)通常对利率变化的敏感度低于固定利率债券。

4.Many corporations issue floating-rate notes (FRNs) to manage their debt more effectively.

许多公司发行浮动利率票据 (FRNs)以更有效地管理其债务。

5.Investors often prefer a floating-rate note (FRN) because it provides protection against rising interest rates.

投资者通常更喜欢浮动利率票据 (FRN)，因为它提供了对抗利率上升的保护。

作文

In the world of finance, various instruments are utilized for investment and funding purposes. One such instrument that has gained popularity among investors is the floating-rate note (FRN). A floating-rate note (FRN) is a type of debt security that features a variable interest rate, which means that the interest payments fluctuate based on market conditions. This characteristic makes floating-rate notes (FRNs) particularly appealing in environments where interest rates are expected to rise. Investors who hold floating-rate notes (FRNs) benefit from the potential for higher returns compared to fixed-rate bonds, as the interest payments adjust periodically, typically every three or six months. The way a floating-rate note (FRN) works is relatively straightforward. The interest rate is usually tied to a benchmark, such as the London Interbank Offered Rate (LIBOR) or the Secured Overnight Financing Rate (SOFR). For instance, if an FRN is issued with an interest rate of LIBOR + 1%, and the current LIBOR rate is 2%, the investor would receive a total interest of 3% for that period. As the LIBOR rate changes, so does the interest payment the investor receives. This dynamic nature of floating-rate notes (FRNs) allows investors to hedge against inflation and rising interest rates, making them an attractive option for risk-averse individuals. Moreover, floating-rate notes (FRNs) are often issued by governments, corporations, and financial institutions. Their flexibility and ability to adapt to changing economic conditions make them a popular choice for issuers looking to raise capital while minimizing interest expenses. For example, during periods of low-interest rates, issuers can benefit from lower borrowing costs, while still providing investors with the opportunity for potential gains. This win-win situation contributes to the increasing issuance of floating-rate notes (FRNs) in the market. However, it is essential to understand the risks associated with floating-rate notes (FRNs). While they offer the potential for higher returns, they also come with their own set of challenges. For instance, if interest rates decline, the interest payments on FRNs will decrease, potentially leading to lower overall returns for investors. Additionally, the credit risk associated with the issuer remains, meaning that if the issuer faces financial difficulties, the investor may not receive the expected payments. Therefore, it is crucial for investors to conduct thorough research and consider their risk tolerance before investing in floating-rate notes (FRNs). In conclusion, floating-rate notes (FRNs) represent a unique investment opportunity within the fixed-income market. Their variable interest rates provide a hedge against rising interest rates and inflation, making them an attractive option for many investors. However, potential investors must carefully weigh the benefits against the inherent risks associated with these financial instruments. As the global economy continues to evolve, the role of floating-rate notes (FRNs) in investment portfolios is likely to remain significant, offering both opportunities and challenges for savvy investors.

在金融世界中，各种工具被用于投资和融资目的。其中一种在投资者中越来越受欢迎的工具是浮动利率票据（FRN）。浮动利率票据（FRN）是一种债务证券，具有可变利率，这意味着利息支付会根据市场条件波动。这一特性使得浮动利率票据（FRN）在预期利率上升的环境中特别具有吸引力。持有浮动利率票据（FRN）的投资者可以从潜在的更高回报中受益，因为利息支付会定期调整，通常每三个月或六个月调整一次。浮动利率票据（FRN）的运作方式相对简单。利率通常与某个基准挂钩，例如伦敦银行间拆借利率（LIBOR）或担保隔夜融资利率（SOFR）。例如，如果某FRN的利率为LIBOR + 1%，而当前的LIBOR利率为2%，那么投资者在该周期将收到总计3%的利息。随着LIBOR利率的变化，投资者收到的利息支付也会随之变化。这种浮动利率票据（FRN）的动态特性使得投资者能够对抗通货膨胀和上升的利率，使其成为风险厌恶者的一个有吸引力的选择。此外，浮动利率票据（FRN）通常由政府、公司和金融机构发行。它们的灵活性和适应经济条件变化的能力使它们成为寻求筹集资本同时降低利息支出的发行者的热门选择。例如，在低利率时期，发行者可以从较低的借款成本中受益，同时仍然为投资者提供潜在收益的机会。这种双赢的局面促进了市场上浮动利率票据（FRN）的不断发行。然而，了解与浮动利率票据（FRN）相关的风险至关重要。尽管它们提供了更高回报的潜力，但也伴随着自身的一系列挑战。例如，如果利率下降，FRN的利息支付将减少，可能导致投资者的整体回报降低。此外，与发行者相关的信用风险依然存在，这意味着如果发行者面临财务困难，投资者可能无法按预期收到付款。因此，投资者在投资浮动利率票据（FRN）之前，进行彻底研究并考虑自己的风险承受能力是至关重要的。总之，浮动利率票据（FRN）在固定收益市场中代表了一种独特的投资机会。它们的可变利率为应对上升的利率和通货膨胀提供了对冲，使其成为许多投资者的一个有吸引力的选择。然而，潜在投资者必须仔细权衡收益与这些金融工具固有风险之间的关系。随着全球经济的不断发展，浮动利率票据（FRN）在投资组合中的角色可能仍然显著，为精明的投资者提供机会和挑战。