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Interest rate collar
A security which combines the Purchase of a Cap and the sale of a Floor to specify a Range in which an Interest rate will fluctuate. The security insulates the buyer against the Risk of a significant rise in a Floating rate , but limits the benefits of a Drop in that floating rate.
Related Terms: 17
Buy , Benefit , Cap , Drop , ECU , ECI , Float , Floating rate , FICA , Floor , Interest , Interest rate , ITS , Purchase , Risk , Range , SEC
Semi Related Terms: 581 CLICK HERE TO VIEW
10-K ,
Adjustable rate ,
Availability float ,
Accrual of discount ,
Accrued interest ,
Agency security ,
Amortization of premium ,
Asset-backed security ,
At par ,
All or any part ,
At best ,
At call ,
Adjustable rate preferred stock ,
Accelerated benefits ,
Accidental death benefit ,
At risk ,
Abstract of title ,
Action to quiet title ,
As is ,
Assignment to creditors ,
Attorney in fact ,
Adjustable Rate Mortgage ,
Advance rate ,
Annual Percentage Rate ,
Applicable federal rate ,
Assignment of mortgage ,
A shares ,
At the money ,
Absorption rate ,
Across the board ,
Additional paid-in capital ,
Against the box ,
At the bell ,
At the close ,
At the figure ,
At the full ,
At the market ,
At the opening order ,
Automated Pricing and Reporting System ,
Away from the market ,
Below the line ,
Books of final entry ,
Books of original entry ,
Burn rate ,
Banking Act of 1933 ,
Benchmark interest rate ,
Bid-to-cover ratio ,
Bond Buyer ,
Book-entry security ,
Bureau of Public Debt ,
Buy ,
Brought over the wall ,
Buy limit order ,
Buy minus ,
Buy minus order ,
Buy on close ,
Buy on opening ,
Buy order ,
Buy stop order ,
Buy the book ,
Balance of payments ,
Bank Rate ,
Base interest rate ,
Board of Governors ,
Benefit ,
Breaking the syndicate ,
Bill of exchange ,
Bill of sale ,
Breach of trust ,
By the book ,
Base rate ,
Blended rate ,
Broker loan rate ,
Benchmark risk ,
B shares ,
Buy and write ,
Benefit offset ,
Benefits administration ,
Buy-side ,
Break-even tax rate ,
Breadth-of-market theory ,
Beat the gun ,
Capitalized interest ,
Cost Of Goods Sold ,
Cost of sales ,
Collection float ,
Compound interest ,
Cabinet security ,
Call risk ,
Cap ,
Certificate of Participation ,
Convertible security ,
Coupon rate ,
Credit risk ,
Current production rate ,
Call money rate ,
Code of procedure ,
Capitalization of income ,
Capitalization rate ,
Cap rate ,
Civilian unemployment rate ,
Cost of Living Adjustment ,
Cost-of-living index ,
Council of Economic Advisers ,
Cash and carry trade ,
Chasing the market ,
Cheapest to deliver ,
Chicago Board of Trade ,
Country risk ,
Cost-of-living rider ,
Capital gains distribution ,
Certificate of stock ,
Cost of carry ,
Certificate of title ,
Contract sale ,
Cancellation of debt ,
Certificate of Claim ,
Consumer interest ,
Cost of debt capital ,
Cost of funds ,
Credit limit ,
C shares ,
Class of options ,
Close to the money ,
Counterparty risk ,
Cash Against Documents ,
Certificate of Occupancy ,
Cash or Deferred Arrangement ,
Cash sale ,
Class A Shares ,
Class B Shares ,
Crash of 1929 ,
Crash of 1987 ,
Capital gains tax ,
Child and dependent care credit ,
Coefficient of determination ,
Cup and handle ,
Certificate of delivery ,
Close a position ,
Closing purchase ,
Cornering the market ,
Curbs in ,
Deposit in transit ,
Date of issue ,
Date of payment ,
Debt limit ,
Deferred interest bond ,
Digested security ,
Droplock security ,
Division of Enforcement ,
Division of Investment Management ,
Division of Market Regulation ,
Date of record ,
Dividend in arrears ,
Dividend rate ,
Desk (the) ,
Discount rate ,
Division of labor ,
Daily trading limit ,
Derivative security ,
Death benefit ,
Doing business as ,
Durable Power of Attorney ,
Date of maturity ,
Debtor in possession ,
Debtor-in-possession financing ,
Deed of Release ,
Deed of Trust ,
Default risk ,
Discharge of bankruptcy ,
Discharge of lien ,
Due-on-sale clause ,
Deep in the money ,
Deep out of the money ,
Deed of Surrender ,
Department of Housing and Urban Development ,
Defined benefit plan ,
Distressed security ,
Diversifiable risk ,
Dogs of the Dow ,
Depth of market ,
Downside risk ,
Drop ,
Effective annual interest rate ,
Eurodollar certificate of deposit ,
Exact interest ,
Equity risk premium ,
Escrowed to maturity ,
Event risk ,
Exchangeable security ,
Exempt security ,
Either-or order ,
ECU ,
Exchange rate ,
ECI ,
Economic growth rate ,
E-mini ,
Exchange against actuals ,
Exchange of spot ,
Excluded risk ,
Effective tax rate ,
Employee Stock Purchase Plan ,
Explicit interest ,
Exercise limit ,
Earned benefit ,
Employee Retirement Income Security Act of 1974 ,
First In First Out ,
Federal Savings and Loan Association ,
Float ,
Flight to quality ,
Floating-rate bond ,
Flow of funds ,
Fill or kill ,
Floor broker ,
Floor trader ,
Front-ending an order ,
Floating exchange rate ,
Foreign exchange rate ,
Forward exchange rate ,
Forward P/E ,
Factors of production ,
Favorable balance of trade ,
Federal Reserve Discount Rate ,
Fluctuation limit ,
Fixed benefits ,
Form 8-K ,
Form S-1 ,
Floating security ,
Friends and family offering ,
Financial risk ,
Fixed rate ,
Fixed-rate loan ,
Fixed-Rate Mortgage ,
Floating rate ,
Floor loan ,
Forward interest rate ,
Forward Rate Agreement ,
Forward sale ,
Full faith and credit ,
Family of funds ,
Fund of funds ,
Free and clear ,
FICA ,
Flexible benefit plan ,
Free float ,
Free right of exchange ,
Floor ,
Graduated security ,
G-7 ,
General Agreement on Tariffs and Trade ,
G-8 ,
Group sale ,
Growth and income fund ,
Gather in the stops ,
Ground floor ,
Hart-Scott-Rodino Act of 1976 ,
Hit the bid ,
House of issue ,
Health Insurance Portability and Accountability Act ,
Holder in due course ,
Home equity line of credit ,
Head and shoulders ,
Hammering the market ,
Held at the opening ,
Historical trading range ,
Holding the market ,
Interest-bearing ,
In escrow ,
Inflation-indexed security ,
Interest rate collar ,
Interest rate risk ,
Interest rate swap ,
Investment security ,
In-house ,
Investment Advisor Act of 1940 ,
Investment Company Act of 1940 ,
In line ,
Inflation rate ,
Interest rate futures ,
Interbank Rate ,
Insurable interest ,
Insider Trading sanctions Act of 1984 ,
Interest ,
Interest expense ,
Internal Rate of Return ,
Indication of interest ,
In intestacy ,
Inter vivos trust ,
Imputed interest ,
Interest deduction ,
Interest-only loan ,
Interest rate ,
Interest rate cap ,
Interest rate ceiling ,
Interest rate floor ,
In play ,
In-process research and development ,
Income risk ,
Interest rate option ,
I/O strip ,
Inchoate interest ,
Interest-only strip ,
Incidental benefit ,
In-service withdrawal ,
Idiosyncratic risk ,
Imbalance of orders ,
In and out ,
In sympathy ,
In the tank ,
ITS ,
Jointly and severally ,
Jumping the gun ,
Joint will ,
Joint and several liability ,
Joint and survivor annuity ,
Last In First Out ,
Lender of last resort ,
Law of one price ,
Letter security ,
Limited risk ,
Lending at a rate ,
Limit-on-close order ,
Limit order ,
Limit order book ,
Limit order information system ,
Limit price ,
Law of demand ,
Law of supply ,
Limit down ,
Limit move ,
Limit up ,
Lock-limit ,
London International Financial Futures and Options Exchange ,
London Inter-Bank Offer Rate ,
Living benefits ,
Letter of comment ,
Legal risk ,
Living will ,
Lifetime cap ,
Line of credit ,
Loan-to-cost ,
Loan-to-value ,
Lock-in ,
Lease-purchase agreement ,
Large cap ,
Leading the market ,
Locked in ,
Long-term gain or loss ,
Last sale ,
Level I quotes ,
Marketable security ,
Mortgage-backed security ,
Mortgage pass-through security ,
Make a market ,
Margin rate ,
Market if touched order ,
Mark-to-market ,
Medium of exchange ,
Marginal propensity to consume ,
Market rate ,
Money at call ,
Mortgage interest deduction ,
Mortgage rate ,
Mortgage risk ,
Market cap ,
Medium-cap ,
Micro cap ,
Mid cap ,
Mill rate ,
Net interest margin ,
Negotiable certificate of deposit ,
Negotiable Order of Withdrawal ,
Negotiable security ,
Nominal rate ,
Non-interest-bearing note ,
Notice of Sale ,
National Association of Securities Dealers ,
National Association of Securities Dealers Automated Quotations system ,
No limit order ,
Null and void ,
Notice of Default ,
National Association of Real Estate Investment Trusts ,
Nonforfeitable benefit ,
Nasdaq Small Cap Market ,
Off the books ,
Office of Thrift Supervision ,
Ordinary interest ,
Out-of-favor ,
Over-the-Counter ,
Off-floor order ,
On-floor order ,
Or better ,
Operating rate ,
Open interest ,
Opinion of title ,
On-the-spot loan ,
Out of the money ,
Old age, survivors, and disability insurance ,
Odd lot buy/sell ratio ,
On the opening ,
Pooling of interests ,
Profit and loss statement ,
Pass-through coupon rate ,
Payment-in-kind security ,
Price Value of a Basis Point ,
Purchase ,
P&L ,
Price limit ,
Policy limit ,
Pour-over will ,
Power of Attorney ,
Personal interest ,
Preforeclosure sale ,
Prepaid interest ,
Prepayment risk ,
Prime rate ,
Principal risk ,
Prioritization of debt ,
Purchase-money mortgage ,
Prime rate fund ,
Position limit ,
Purchase agreement ,
Pension benefit ,
Pension Benefit Guaranty Corporation ,
Paid-in capital ,
Paid-in surplus ,
Private Investment in Public Equity ,
Preservation of capital ,
Point-and-figure chart ,
Painting the tape ,
Price range ,
Reports and Records ,
Retention rate ,
Return of capital ,
Risk adjusted return ,
Run rate ,
Real interest rate ,
Rate covenant ,
Registered security ,
Residual security ,
Restricted security ,
Risk ,
Reading the tape ,
Receive against payment ,
Regulation D ,
Regulation G ,
Regulation T ,
Regulation U ,
Round of funding ,
Rules of Fair Practice ,
Rate of exchange ,
Reciprocal of European terms ,
Real economic growth rate ,
Range ,
Reinvestment risk ,
Regulation A ,
Right of first refusal ,
Right of rescission ,
Right to Know ,
Rate-improvement ,
Rate lock ,
Renegotiable rate ,
Revolving line of credit ,
Right of recourse ,
Rule of 78 ,
Right of redemption ,
Retirement Equity Act of 1984 ,
Risk/return trade-off ,
Risk arbitrage ,
Risk-averse ,
Risk management ,
Risk neutral ,
Risk premium ,
Risk seeking ,
Rate of return ,
Real rate of return ,
Risk capital ,
SEC filing ,
Selling, General and Administrative Expenses ,
SG&A ,
Savings and Loan ,
Sight letter of credit ,
Simple interest ,
S&L ,
SEC ,
Securities and Exchange Commission ,
Spot rate ,
Stamped security ,
SEC fee ,
Segregation of securities ,
Sell limit order ,
Sell the book ,
Significant order ,
Stop-limit order ,
Savings rate ,
Standard of living ,
Swap rate ,
Systemic risk ,
Second-to-die insurance ,
Survivor benefit ,
Short interest ,
Short interest ratio ,
Severally but not jointly ,
Statute of Limitations ,
Sale and leaseback ,
Satisfaction of debt ,
Security interest ,
Security loan ,
Senior security ,
Start rate ,
Staggered board of directors ,
Selling the spread ,
Social Security ,
Social Security Tax ,
Small cap ,
Security analysis ,
Selling short against the box ,
Shorting against the box ,
Short purchase ,
Short sale rule ,
S Corporation ,
Short-term gain or loss ,
Standard mileage rate ,
Subchapter M ,
Subchapter S Corporation ,
Schedule C ,
Securities Act of 1933 ,
Securities Acts Amendments of 1975 ,
Securities Exchange Act of 1934 ,
Seek a market ,
S&P phenomenon ,
Stop and reverse ,
Times interest earned ,
T-Bill ,
Term to maturity ,
Treasury Inflation-Protected Security ,
Trust-preferred security ,
Take a position ,
Trailing P/E ,
Trading range ,
Tenancy by the entirety ,
Teaser rate ,
Truth in Lending ,
Tenancy at will ,
Top hat plan ,
The Street ,
Timing the market ,
Taxpayer Relief Act of 1997 ,
Tax Reform Act of 1986 ,
Tax Reform Act of 1993 ,
Tax sale ,
Take a bath ,
Trading floor ,
U.S. Government Agency Security ,
U.S. Savings Bond ,
U.S. Treasury ,
U.S. Treasury Bill ,
U.S. Treasury Bond ,
U.S. Treasury Note ,
U.S. Treasury Securities ,
Unlimited risk ,
Unemployment rate ,
Underlying security ,
Unearned interest ,
Unsystematic risk ,
Unit of trade ,
Unit of trading ,
Variable rate ,
With interest ,
Waiver of premium ,
Widow-and-orphan stock ,
W-2 Form ,
Wash sale rule ,
W formation ,
When, as, and if issued ,
X or XD ,
Year-To-Date ,
Yield to call ,
Yield to maturity ,
Yield to worst ,
Y shares