Floating-Rate Note Margin
FRNs are commonly quoted as a reference rate plus a contractual margin, while secondary valuation can involve discount margin concepts.
Market use
Reference benchmark, reset convention and floors/caps matter.
What it means
FRNs are commonly quoted as a reference rate plus a contractual margin, while secondary valuation can involve discount margin concepts.
Example
A coupon may be SOFR plus 80 bp under the instrument's terms.
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.
Related Conventions
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.