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  • August 13, 2021
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PAUG Cap

It stands for pay-as-you-go cap; an interest rate cap that requires its holder to pay only a small upfront premium compared to corresponding standard caps, and allows for deciding, prior to each reset date, whether to go on with the cap, and hence pay the next installment, or not.

The pay-as-you-go cap is also known as a installment cap.


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