Seeking Alpha Article on Treasury Floaters

Seeking Alpha has published my article Treasury Floaters Muddy the Waters. It discusses the possibility that the U.S. Treasury will begin to sell floating-rate debt alongside its traditional fixed-rate bills, notes and bonds. The Treasury might employ floaters as part of a strategy to extend the average maturity of its debt. While average maturity is a good indicator of the interest rate risk to an issuer of fixed-rate debt, it does not capture the interest rate risk of floaters.  If the Treasury uses floaters to increase the average maturity, it could create the appearance, but not the reality, of reduced interest rate risk.

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6 Responses to Seeking Alpha Article on Treasury Floaters

  1. Dexter Morgan says:

    Creating the appearence of reduced interest rate risk, sound familiar…


  2. Win Smith says:

    Dexter, thanks for the Wikipedia suggestion. I’ll look in to it. Best, Win


  3. Pingback: Treasury Floaters: An Update | The Well-Tempered Spreadsheet

  4. Pingback: My Comment to the Treasury on Floating Rate Notes | The Well-Tempered Spreadsheet

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