January 22, 2019
Beware Zero-Based Floors
Chatham: Banks embedding zero-based floors in the fine-print on some floating debt. With rates going negative around the world, banks are embedding zero-based floors into the floating-rate loans they provide, and while on the surface that seems like a plus, they can end up carrying a big price. That was one of several insights on today’s uncertain financial markets that Kennett Square, PA-headquartered Chatham Financial provided in a recent market update titled. “Global uncertainty packs a local punch.” Zero-based floors…