A callable note that pays a fixed interest rate for a specific period, which steps up (increases) at predetermined dates in the future. The issuer has the right to call (i.e., redeem) the note early before expiration date. Note holders will receive, in exchange, coupon payments that are higher than non-structured (vanilla) notes that have the same basic features and similar credit quality.

For more information on these notes, see: step-up callable note.