Term:
Grantor underwriting notes (GUNs)
Definition:
A floating-rate note facility is similar to a revolving underwriting facility (RUF) in that a group of banks (grantors) undertake to purchase any notes put back to them by investors on any floating-rate note (FRN) interest rate fixing date. Put notes are then auctioned out to the market by the grantors.
Domain:
Finance
Source:
Coordinated Portfolio Investment Survey Guide, Second Edition, International Monetary Fund, 2002, Washington DC. Appendix VI: Definition and Description of Instruments
