The drop-lock bond (DL bond) combines the features of both floating- and fixed-rate securities. The DL bond is issued with a floating-rate interest that is reset semiannually at a specified margin above a base rate, such as six months LIBOR. This continues until the base rate is at or below a specified trigger rate on an interest fixing date or, in some cases, on two consecutive interest fixing dates. At that time the interest rate becomes fixed at a specified rate for the remaining lifetime of the bond.