Definition for : Floating-rate debt security
The coupon (see Coupon rate) of a floating-rate Debt security is not fixed, but is indexed to the Reference rate (generally a short-term rate), usually more than once a year. Investors know the actual payments they will receive for the next payment date only.
(See Chapter 21 Other debt products of the Vernimmen)
To know more about it, look at what we have already written on this subject