drop-lock

adjective

Having a floating interest rate until a certain market rate is reached, at which point the interest rate becomes fixed.

“a drop-lock bond”

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Meanings

adjectivedrop-lock (not comparable)
  1. not comparablebusinessHaving a floating interest rate until a certain market rate is reached, at which point the interest rate becomes fixed.

    a drop-lock bond

    1 more example

    a drop-lock stock

noundrop-lock (plural drop-locks)

plural drop-locks

  1. businessA financial instrument of this kind.
Cite this entry
APA

drop-lock. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/drop-lock

MLA

“drop-lock.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/drop-lock. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “drop-lock,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/drop-lock.

Source: drop-lock on Wiktionary, CC BY-SA 4.0.