I suspect the average investor doesn't know much about FRNs. A neighbour of mine, who is a retired bank manager, is an active investor but doesn't know anything about them!
I would be interested in knowing if any FRNs have ever failed. I feel comforted by the relative security that they offer, knowing that I have an excellent chance of getting the face value back, (apart from perpetual notes). I am somewhat risk adverse and these notes help me sleep better.
It pays to know what makes up your return with FRNs, ie dividend yield plus capital gain/loss. I wish there was a site that worked out the running yield of all the FRNs available. Or a spreadsheet program that I could use off-line
