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RATES

Coupon Reset

The process for determining a floating coupon from its reference rate and contractual spread under specified observation rules.

Market use

Reset timing can differ from payment timing.

What it means

The process for determining a floating coupon from its reference rate and contractual spread under specified observation rules.

Example

A quarterly FRN may reset using a benchmark observed according to its documentation.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.