Index amortizing note (IAN),
Definition of Index amortizing note (IAN):
Index Amortizing Notes are structured to reduce the holders' interest rate risk. The IAN's maturity phase extends when interest rates increase. Conversely, as interest rates decline, the maturity period shortens. Amortization refers to paying off a debt over time in regular installments following an amortization schedule, which includes both interest and principal payments. With Index Amortizing Notes, the debt payment timeframe depends on the market interest rates. .
An Index Amortizing Note (IAN) is a type of structured note or debt obligation. The amount of the principal repayment will increase or decrease following an amortization schedule which has a basis of an index such as the LIBOR (London Interbank Offered Rate), the CMT (Constant Maturity Treasury), or the mortgage interest rate.
A security that has a payoff rate linked to the current market interest rate.
Meaning of Index amortizing note (IAN) & Index amortizing note (IAN) Definition