noun ·Rare ·Advanced level

Definitions

Noun

1. 1
   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.

Etymology

From floor + -let.

Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.