August 18, 2010
What is the difference between a Floating-Rate Notes and Bank Bill?
By Planet Wealth
The reference rate for FRN in Australia is BBSW – calculated on monthly, quarterly, yearly basis. while the Bank Bill rate is calculated on 30 day, 90 day, 120 day or 180 day basis.
Is it that Bank bill rate is referring to NEW bills and FRN is referring to bill traded on the secondary bill market?
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One Response to “What is the difference between a Floating-Rate Notes and Bank Bill?”
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August 18th, 2010 at 7:56 pm
Most FRNs are really floating-rate Eurobonds and are, therefore, medium-to-long-term securities. Bank bills generally are small-term.