Home > Financial Encyclopedia > Derivatives > F > Floating Rate Payer
Derivatives | F
Floating Rate PayerA party to an interest rate swap who makes, to a fixed rate payer, variable (floating) interest rate payments based on a specified reference rate. The “swap seller” or the “party that is short the swap” also denote the same meaning.
This term could also refer to the issuer of floating rate securities such as a floating rate note (FRN) or adjustable rate preferred stock.
|See also:||Fixed Rate Payer|