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Lender's Option- Borrower's Option (LOBO...
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Lender's Option- Borrower's Option (LOBO)
A floating rate instrument which permits the lender to nominate a revised rate at periodic
reset dates
, and lets the borrower decide whether to pay the rate or redeem the
bond
. Compare with other floating rate reset mechanisms, such as
Dutch Auction Interest and Dividend Reset
. See also
Puttable Extendible Notes
.
Glossary
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