interest rate collar

noun

A derivative strategy that combines an interest rate cap and floor to limit interest rate fluctuations on variable-rate loans or investments, creating a defined range of rates.

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Meanings

nouninterest rate collar (plural interest rate collars)

plural interest rate collars

  1. businessA derivative strategy that combines an interest rate cap and floor to limit interest rate fluctuations on variable-rate loans or investments, creating a defined range of rates.
Cite this entry
APA

interest rate collar. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/interest%20rate%20collar

MLA

“interest rate collar.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/interest%20rate%20collar. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “interest rate collar,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/interest%20rate%20collar.

Source: interest rate collar on Wiktionary, CC BY-SA 4.0.