Floating Rate Note (FRN)

This term used to describe a collective investment scheme, into which investors’ monies is pooled and managed as a single entity with a common investment aim. These protect investors against a rise in interest rates (which have an inverse relationship with bond prices), but also carry lower yields than fixed notes of the same maturity. It's essentially the same concept as a adjustable-rate mortgage, except FRNs are investments (not debt).