Floating-rate debt outperforms fixed-rate holdings when interest rates are rising, research finds, but be prepared to pivot when they start falling.
When credit spreads widen, corporate FRN prices may decline temporarily as investors demand greater compensation for credit ...
Returns in floating rate notes are driven by two main components: short-term interest rates and credit spreads. What Drives Returns in Floating Rate Notes? Corporate floating rate notes (FRNs) are ...