floorlet

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noun

A component of an interest rate floor, a derivative instrument that effectively prevents the interest payments on an otherwise variable-rate loan from falling below an agreed level (the "floor"). Each floorlet, analysable as a put option, covers one interest accrual period (such as three months); the whole interest rate floor is made up of a series of consecutive floorlets.

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Meanings

nounfloorlet (plural floorlets)

plural floorlets

  1. businessA component of an interest rate floor, a derivative instrument that effectively prevents the interest payments on an otherwise variable-rate loan from falling below an agreed level (the "floor"). Each floorlet, analysable as a put option, covers one interest accrual period (such as three months); the whole interest rate floor is made up of a series of consecutive floorlets.

Origin

From floor + -let.

Full word history & related roots →
Cite this entry
APA

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

MLA

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

Chicago

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

Source: floorlet on Wiktionary, CC BY-SA 4.0.