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Cap
Opposite: floor.
(1) Maximum interest rate on floating rate bonds.
(2) Individually structured interest rate option that protects the buyer long-term against rising interest rates via a ceiling.
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
- Product:
- Acronym-Abbreviation:
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