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Floating Rate Payer
F
Floating Rate Payer
(1) A party to an
interest rate swap
agreement who is required to make variable interest rate payments determined by the
reference index rate
named in the swap
contract
. Often called the seller of the swap or said to be
short
the swap. Also called
Swap Seller
. (2) The
issuer
of a
floating rate note (FRN)
or adjustable rate
preferred stock
(ARPS).
Glossary
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