A floored floater which is also capped: the coupon of the floater cannot increase beyond the cap rate. In other words, the floater pays a floating coupon which is subject to a maximum and minimum coupon level, irrespective of the where the underlying rate sets.
Other variations include stepped capped floaters and stepped floored floaters, in which the capped coupon/ floored coupon vary over the life of the note/ bond.
