A floater (floating rate note, FRN) that is not callable (as opposed to a callable floater). In other words, it is issued, as a note, without a call option in the hands of the issuer. The issuer of a non-callable floating rate note has no right to return the investor’s principal amount (the par value of the note) and, consequently, stop making interest payments.

Callability, or otherwise non-callability of a note, is determined upfront so that both parties, the issuer and investors, can plan expectations as to any possible redemption before maturity.

A floating rate note without an embedded call option is issued with a premium over otherwise identical floater embedded with such a call option.