DEFINITION of 'Super Floater'
A floatingrate collateralized mortgage obligation (CMO) tranche whose coupon rate is determined by a formula based on an interestrate index such as LIBOR. The coupon rate is leveraged i.e. it moves more than one basis point for each basis point change in the index.
A super floater can also refer to a leveraged floating rate note whose coupon rate changes are magnified (ratio greater than one) when the reference interest rate or index changes. Since their coupon rate moves in the same direction as interest rates, super floaters are suitable investments in a rising interestrate environment.
BREAKING DOWN 'Super Floater'
As an example, a super floater coupon may be determined by the following formula: 2 x (oneyear US$ LIBOR)  4%. So if the oneyear LIBOR is 3%, the coupon rate would be 2 x 3%  4% = 2%. To prevent the coupon rate getting negative, a floor rate on the coupon is usually specified.

Deleveraged Floater
A fixedincome instrument with a floating coupon rate that is ... 
Leveraged Floater
A security, generally a bond, which has a leverage factor of ... 
Reverse Floater
A floatingrate note in which the coupon rises when the underlying ... 
Inverse Floater
A bond or other type of debt whose coupon rate has an inverse ... 
Floater
A bond or other type of debt whose coupon rate changes with market ... 
Current Coupon Bond
A bond with a coupon rate that is within 0.5\% of the current ...

Personal Finance
Coupon Shopping: Clip Your Way To Savings
Use coupons strategically to score big savings on everyday purchases. 
Entrepreneurship & Small Business
The Pros & Cons Of Using Coupons For Your Business
Coupons can drive business to your store – you just need to make sure it's profitable business. Here are strategies that work. 
Investing
What is a "Coupon"?
In the financial world, “coupon” represents the interest rate on a bond. 
Markets
What are FloatingRate Notes?
A floatingrate note is a debt instrument with an interest rate that “floats,” or varies. They are also called floaters. 
Investing
Explaining the Coupon Rate
Coupon rate is the stated interest rate on a fixed income security. 
Markets
How Does A Bond’s Coupon Interest Rate Affect Its Price?
All bonds come with a coupon interest rate, which is the fixed annual interest a bond pays. 
Markets
Comparing Yield To Maturity And The Coupon Rate
Investors base investing decisions and strategies on yield to maturity more so than coupon rates. 
Managing Wealth
Risks To Consider Before Investing In Bonds
Make sure you understand the risks associated with bonds before making an investment decision. 
Markets
The Importance Of LIBOR In Financial Markets
What is LIBOR and why are its interest rates so important to the financial markets? 
Markets
An Introduction To LIBOR
This influential rate is published daily in Britain, and felt all around the world.

How does a bond's coupon rate affect its price?
Find out how a bond's coupon rate influences its price, including the role of governmentdictated interest rates and the ... Read Answer >> 
How does a bond's coupon interest rate affect its price?
Find out why the difference between the coupon interest rate on a bond and prevailing market interest rates has a large impact ... Read Answer >> 
How do interest rates affect a bond's coupon rate?
Find out how the changes in the national interest rate affect the coupon rates of newly issued bonds and why coupon rates ... Read Answer >> 
How can I calculate a bond's coupon rate in Excel?
Find out how to use Microsoft Excel to calculate the coupon rate of a bond using its par value and the amount and frequency ... Read Answer >> 
What is the most common solvency ratios used in fundamental analysis?
Learn about the difference between a bond's coupon rate and its yield rate, how the coupon rate influences market price and ... Read Answer >> 
Why do bond coupon rates vary so greatly?
Learn about the two major reasons that cause bond coupon rates to vary so dramatically and what role coupons play in the ... Read Answer >>