Floating rate
- Japanese
- 変動金利
- Also known as
- Variable rate
- Last reviewed
- September 24, 2026
This is a draft, shown for review before publication.
A floating rate is an interest rate that is reset during the term of a trade or loan to follow the level of a reference rate. In an interest rate swap, it is set for each interest period from a benchmark rate such as TONA or TIBOR.
Related terms
Explained in detail
Pages that use this term
- Day Count Conventions
- Business Day Conventions and Holiday Calendars
- Bootstrapping a Yield Curve
- The Multi-Curve Framework
- Dealers and Brokers
- How Corporates Use Derivatives
- How Institutional Investors Use Derivatives
- How Regional Banks Use Derivatives
- Exchange-Traded vs OTC Derivatives
- Cleared vs Bilateral Trades
- What Is a Derivative?
- How Swaps Work
- Forward Rate Agreements (FRA)
- Valuing an Interest Rate Swap
- Overnight Index Swaps (OIS)
- Basis Swaps
- Amortizing Swaps
- Caps and Floors
- Swaptions
- Overview of Exotic Rate Products
- Bermudan Swaptions
- Callable Swaps
- Constant Maturity Swaps (CMS)
- CMS Spread Options
- Snowballs
- What Is a Benchmark Rate?
- TONA
- TORF
- TIBOR
- SOFR
- €STR and SONIA
- Compounding in Arrears
- Lookback, Lockout and Payment Delay
- The Transition from LIBOR
- Fallbacks and Spread Adjustments
- Covered Interest Parity and FX Forward Points
- Cross-Currency Swaps
- Power Reverse Dual Currency (PRDC)
- Equity Swaps and Total Return Swaps
- Insurance-Linked Securities and Cat Bonds
- Callable Bonds and Early Redemption Features
- Structured Deposits
- Structured Loans
- What Is Counterparty Credit Risk?
- Exposure Profiles by Product
- Funding Variation and Initial Margin
- Understanding Client Needs
- Mark-to-Market Reporting to Clients
- Early Termination
- Trade Capture and Approval
- Lifecycle Event Processing
- The ISDA Common Domain Model (CDM)
- Intragroup Back-to-Back Trades
- Japan's Fair Value Measurement Standard
- Hedge Accounting Basics
- Deferral Hedge Accounting under Japanese GAAP
- Hedge Accounting under IFRS 9 and ASC 815
- Japanese GAAP vs IFRS vs US GAAP
- Transfer Pricing for Cross-Border Trades
- Portfolio Compression
- Mis-Selling Cases
- Mandatory Clearing
- Electronic Trading Platform Mandate
- OTC Derivatives Regulation in Hong Kong
- South Korea
- The Swap Market and ISDA
- The LIBOR Manipulation Scandal
- Bank Losses from the Archegos Default (2021)
- ESG-Linked Derivatives
- Digitalization: CDM and Tokenization