Also, high-low floater; a floater which is designed as a yield enhancement instrument. It has a premium rate that is equal to a reference index rate (market rate), subject to a cap level. If the market rate increases beyond the cap rate, the floater turns into a reverse floater. The floater’s yield decreases as the market rate appreciates.

This floater is typically sought by investors who expect floating rates would only stage a modest increase over the span of the instrument.