Business and Personal Finance Dictionary

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• LADDER PERIODIC CAP
  
  A Periodic Cap (q.v.) that depends not on LIBOR at the end of the previous period, but on the highest or lowest rung of the Ladder that LIBOR reached during that period. The Ladder is a predetermined set of LIBOR levels, such as 4.00%, 3.50%, 3.00%, etc. The Ladder can change from period to period. The Ladder Periodic Cap is a special case of the Lookback Periodic Cap (q.v.). (Source: Dehnad, Kosrow. "Learning Curve; Lookback and Ladder Periodic Caps." DW, October 25, 1993.)
  
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