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