An interest rate swap in which the floating rate leg is payable on a specific percentage of its notional principal amount. The remaining percentage is assigned as the fixed rate leg. The floating portion of this swap increases as the reference floating rate (LIBOR) moves up according to a predetermined resetting schedule, and vice versa. In other words, the floating-rate payer makes payment on a resettable notional amount. This swap is mainly instrumental to floating rate borrowers who expect interest rates to move considerably below the level at which the floating rate is payable on a large proportion of the notional amount.