A floating rate security in which the coupon can be changed in accordance with market conditions, allowing whereby to the issue to trade at a preset (minimum) price.

Coupon rate = reference rate + required margin

The new rate will adjust to the new market conditions (in addition, of course, to the required margin). As such, this floater takes into account the market perception of the issuer risk. Therefore, the quoted margin is not fixed (as is the case with a typical floater) but varies over time.