„Indexed“

What does Indexed stand for?

In finance this term means “measured by” and/or “adjusted according to,” thus an interest rate on a note may be, by agreement, “indexed” i.e. adjusted according to the market at time the interest is due. Or a note denominated in a foreign currency may have its exchange rate “indexed,” adjusted according to the market rate in effect at the time of payment.

Source:

Frank J. Fabozzi, Franco Modigliani, Frank J. Jones. “Foundations of Financial Markets and Institutions”, Pearson Prentice Hall, 4th edition, 2010.

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