Floating-Rate Asset

Floating-rate asset is an asset whose interest rate resets periodically according to a benchmark or stated formula.

Why this matters to income investors

Asset income can reset as rates change, though borrower stress may offset the benefit.

How to use floating-rate asset in your research

Check when the asset income and borrowing costs reset. A rate change can reach each side at a different time, so compare the net effect on the earnings used to fund distributions.

This material is general education and information, not individualized investment, tax, or legal advice.