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    1. Just in the last year or so, partly because of a shortage of other securities, tax-free funds have begun to purchase so-called "synthetic floaters."
    2. "The floaters blew out," said an official at Bear Stearns.
    3. Several vessels have struck these renegade "floaters" off Kuwait, Saudi Arabia and Bahrain.
    4. "As the rates inverse floaters pay decline below short-term rates, the value of the securities will decline below par," Ms. Smythe said in her letter to the ICI.
    5. However, during the recent bond market sell-off, Brady floaters fell sharply, effectively behaving like long-dated fixed-rate bonds.
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