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Master Notes

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Definition of 'Master Notes'

High-quality, short-term debt instruments offered by the Federal Farm Credit Bank (FFCB) with a minimum face value of $25 million. Master notes typically mature in one year, paying interest that is indexed to LIBOR or another appropriate index. Due to the high value of each note, these instruments are normally used by money managers who require highly liquid, customizable investments.
Investopedia Says

Investopedia explains 'Master Notes'

Master notes typically have an embedded put/call feature that is advantageous to most money managers. These embedded options may limit the frequency of purchases or sales of money market instruments such as discounted notes, and allow for the daily ability to adjust total value, either upwards or downwards, by 25% of the base principal.

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