Leveraged loans, unlike bonds, have a floatinginterestrate, which is less attractive in a falling interest rate environment.
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The loan, which has a floatinginterestrate of 11.25 percent, has a principal moratorium period of 18 months, he said.
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Where it differs from past proposals, though, is in its offer of a floatinginterestrate and no interest payments for 2009 and 2010.
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In times like these, when rates are dropping, a floatingrate scores.
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Libor typically is used as the basis for the floatingrate.
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The other is a floatingrate that adjusts based on supply and demand.
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FSIC invests primarily in the floatingrate, senior secured debt of private U.S. companies.
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A floatingrate could see rates increasing or decreasing, and your payments would follow.
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There will be variablerate pricing at different times of the day.
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New and existing variablerate customers can avail of the new fixed rates.
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That variablerate was linked to an interbank interest rate known as Euribor.
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However, there is no relief to those on the lender's standard variablerate.
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AIB is offering a 10 per cent variablerate on all student loans.
Uso de adjustable rate em inglês
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It's called an adjustablerate mortgage, known in the trade as an option ARM.
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They can also offer an adjustablerate mortgage which includes both a fixed and variable rate.
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Less than a handful of securities backed by adjustablerate mortgages were sold during the month.
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Well, the adjustablerate mortgage... it adjusted.
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He is especially concerned about the resetting of adjustablerate mortgages, which will mean bigger monthly payments for borrowers.
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While adjustablerate mortgages see higher monthly costs when rates rise, variable rate mortgages typically come with fixed monthly payments.
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Many borrowers who took out low "teaser" adjustablerate mortgages are facing resets, often at vastly higher rates.
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Some lenders, such as Countrywide, aren't charging any less for adjustablerate loans than they are for fixed rate loans.
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Kelly and David Graham of Westminster, Massachusetts, refinanced their home in 2003 with an adjustablerate mortgage from Ameriquest to consolidate their debts.
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HSBC Chief Executive Michael Geoghegan said most of his company's problem was in U.S. subprime mortgages, particularly for adjustablerate mortgages and second-lien loans.
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These were adjustablerate mortgages-loansthat would see interest rates fluctuate over time-thatallowed borrowers to choose how much they would pay each month.
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A move like that can seem appealing, because banks promise that switching to an adjustablerate can save hundreds of dollars a month now.
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Many Americans with good credit but low income or no savings signed up for adjustablerate mortgages or interest-only loans to get into the market.
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Option adjustablerate mortgages (or option ARMs) typically let borrowers choose a monthly payment, but instead of paying down mortgages they often paid interest-only.
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Fixed mortgage rates rose marginally, while adjustablerates slipped in the week ended June 17.
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Libor has existed since the 1980s, when banks developed it as a benchmark for adjustablerates on corporate debt.