An interest rate cap is essentially an insurance policy on a floating rate, most frequently SOFR. It has three primary economic terms: notional, term, and strike rate.

Release: National Rates and Rate Caps - Monthly Update, 95 economic data series, FRED: Download, graph, and track economic data.

In finance, an interest rate cap is a type of interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a …

An interest rate cap is an OTC derivative where the buyer receives payments at the end of each period when the interest rate exceeds the strike, whereas an interest rate floor is a similar contract where the buyer receives payments at the end of each period when the …

2012年1月2日 · An interest rate cap is an interest rate management tool for an entity wanting to cap the interest commitment on its debt. It serves as a protection against increases in interest rates by limiting the maximum interest rate payable on its debt. This maximum interest rate is known as the cap rate or strike rate.

2025年2月13日 · The National Institutes of Health on Feb. 7 announced it would cap coverage of indirect costs at 15% for new and existing grants, replacing U-M’s previously negotiated facilities and administrative cost rates, which include a 56% rate for on-campus research.

2022年5月16日 · An interest rate cap is an insurance policy on a floating-rate index like SOFR, LIBOR, SONIA, or EURIBOR. It pays out to the purchaser of the cap if the index rate increases above a pre-determined threshold (the “strike rate”).

2022年5月13日 · The intrinsic value of a cap reflects the present value of the payments that the borrower is expected to receive on the cap, based on market expectations for where the hedged index (typically SOFR or LIBOR) will go over the life of the cap.

2022年12月21日 · An interest rate cap is an agreement that allows the borrower to negotiate a pre-determined cap on a variable interest rate. In other words, an interest rate cap is an insurance policy a borrower can take out against interest rate increases.

2025年2月10日 · The NIH recently released Supplemental Guidance (NOT-OD-25-068), announcing a 15% cap on indirect cost rates for institutions of higher education (IHEs), effective February 10, 2025. This change applies both to new grants issued after this date and existing grants for all go-forward expenses .