floating rate
[/ˈfloʊtɪŋ reɪt/]
nounpl: floating rates
taxa flutuante
1. An interest rate that changes periodically based on market conditions or a reference rate index
The mortgage has a floating rate that adjusts every six months based on the prime rate.
A hipoteca tem uma taxa flutuante que se ajusta a cada seis meses de acordo com a taxa básica.
2. In finance, an interest rate not fixed for the entire loan term, varying with changes in benchmark rates
Investors prefer floating rate bonds when interest rates are expected to rise.
Os investidores preferem títulos com taxa flutuante quando se espera que as taxas de juros aumentem.
In Brazil, floating rates are particularly relevant in the mortgage and investment markets, where they are often indexed to the SELIC rate or other benchmarks. In the USA, adjustable-rate mortgages (ARMs) with floating rates became especially significant after the 2008 financial crisis. The term is standard financial vocabulary in both countries and carries the same technical meaning in English and Portuguese-speaking financial sectors.
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