The name sounds like a euphemism for drowning victims, but inverse floaters are nonetheless paying off for issuers, investors, and dealers capitalizing on declining interest rates.

First introduced by Lehman Brothers last year as a way for issuers to cut costs and investors to benefit even when rates fall, inverse floaters are now being offered by five other firms. The 43 issues executed so far amount to more than $3 billion, according to figures from Securities Data Co./Bond Buyer.

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