Floating rate
An interest rate that floats, by reference to inter-bank offered rates, or central bank base rates, or that kind of thing.
Once thought of as a sleepy corner of the financial markets inhabited by losers who couldn't get a job trading anything sexy like credit derivatives but boy did a few folks who thought that get a surprise in 2012.
They’re in jail now.[1] let me Google that for you
- ↑ Mind you, so are quite a few credit derivatives traders.