Go to Statistics Portal


Statistics Directorate    
The drop-lock bond (DL bond) combines the features of both floating- and fixed-rate securities. The DL bond is issued with a floating-rate interest that is reset semiannually at a specified margin above a base rate, such as six months LIBOR. This continues until the base rate is at or below a specified trigger rate on an interest fixing date or, in some cases, on two consecutive interest fixing dates. At that time the interest rate becomes fixed at a specified rate for the remaining lifetime of the bond.

Source Publication:
Coordinated Portfolio Investment Survey Guide, Second Edition, International Monetary Fund, 2002, Washington DC. Appendix VI: Definition and Description of Instruments.


Statistical Theme: Financial statistics

Created on Thursday, August 1, 2002

Last updated on Thursday, August 1, 2002