A CMO tranche that pays an adjustable rate of interest that moves in the opposite direction from movements in a representative interest rate index such as the London Interbank Offered Rate (LIBOR), the Constant Maturity Treasury (CMT), or the Cost of Funds Index (COFI). (See page 15.)
A variable-rate bond whose coupon resets in the opposite direction of interest rates, according to a formula involving a market index such as LIBOR. A typical formula might be: 18% - 2xLIBOR, in which case the coupon would decline by 2% if LIBOR increases by 1%.
A floater whose coupon varies inversely to its reference rate.
A bond with a coupon rate structured to move in the opposite direction of interest rates.
A bond or other type of debt whose coupon rate changes inverse (opposite) to short term interest rates.
A floating rate security whose coupon rises (falls) as the index to which it is tied falls (rises).