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| Path-Dependent Floating Rate Note |
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Path-Dependent Floating Rate Note
A floating rate note with embedded caps or collars that limit the floating rate adjustment to, for example, 25 basis points from one reset to the next. The rate is path-dependent because the adjustment limit constrains the maximum or minimum rate for later resets as a function of previous rates. Also called Near Perfect Floating Rate Note. Compare to Ratchet Swap.
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Glossary *
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