I will be giving a talk on “Interest Rate Risk and the U.S. Treasury” to the Denver Chapter of the Global Association of Risk Professionals (“GARP”) on Thursday, July 19, 2012. Here is an abstract:
The U.S. Treasury now enjoys historically low interest rates on its debt. It has even considered the sale of T-Bills with negative yields. With such low rates, its interest payments are the same as when the total debt was much lower. But when interest rates rise again, what might be the cost? How should the Treasury manage that risk? Some argue that the Treasury should lock in low rates for as long as possible. The Treasury has taken steps to lengthen the average maturity of its debt, but it is also considering the issuance of floating rate notes, which might increase its interest rate risk. We will explore these issues as investors and as citizens.
The Chapter meeting will begin at 5:30 pm at the Broker Restaurant in downtown Denver. You can register here. If you are not already a GARP Member, registration will automatically qualify you as an Affiliate (free) Member. I hope to see you there.