Cryptocurrency Q&A What is a floating loan?

What is a floating loan?

Raffaele Raffaele Wed Nov 27 2024 | 5 answers 1540
I've recently encountered the term 'floating loan' and I'm not sure what it means. Could someone explain to me what a floating loan is, and possibly provide some context or examples to help me understand it better? What is a floating loan?

5 answers

SumoMight SumoMight Fri Nov 29 2024
Floating-rate loans are also referred to as bank loans, senior loans, Leveraged loans, and syndicated loans.

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Nicolo Nicolo Fri Nov 29 2024
These loans function differently from traditional bonds in terms of interest payments.

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TaekwondoMasterStrengthHonorGlory TaekwondoMasterStrengthHonorGlory Fri Nov 29 2024
Specifically, floating-rate loans do not have a fixed interest payment for each payment period.

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CryptoLegend CryptoLegend Thu Nov 28 2024
The coupons on these loans are instead adjusted based on the prevailing interest rates.

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SamsungShiningStar SamsungShiningStar Thu Nov 28 2024
This means that the interest payments can vary, depending on the current market conditions.

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