Growth in the floating rate notes market has allowed issuers to gain cost-effective variable rate exposure and investors a way to manage interest rate risk, according to speakers at the first ever municipal conference focused on the securities.

"FRNs have been a common form of financing in the corporate and asset-backed debt markets to gain access to variable interest costs of funds without risks to the short-term bank market, and now the municipal industry is following suit by adopting the product within our own market," said Mark Maroney, head of U.S. rates, municipals, and securitized products at RBC Capital Markets.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.