Investors keep options open with floored and collared FRNs, RBC
Investors seeking low-risk investments have always been attracted to floating-rate notes (FRNs), and increasingly to the floored and collared variety, according to the latest investment quarterly report from RBC Wealth Management.
“The interest rate associated with floored FRNs is directly linked to interbank money market rates such as GBP Libor, USD Libor and Euribor,” says Andrew Cooper, head of structured notes at RBC in London. “In addition, for floored FRNs the regular interest payment
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