Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
612-822-4611

  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Debt management - floating rate notes can help Treasury meet borrowing goals, but additional actions are needed to help manage risk: report to the Cha

Debt management - floating rate notes can help Treasury meet borrowing goals, but additional actions are needed to help manage risk: report to the Cha

Office, U. S. Government Accountability

Paperback

General Reference

ISBN10: 1973974525
ISBN13: 9781973974529
Publisher: Createspace
Published: Jul 28 2017
Pages: 50
Weight: 0.31
Height: 0.10 Width: 8.50 Depth: 11.02
Language: English
To continue meeting its goal of financing the federal government's borrowing needs at the lowest cost over time, Treasury began issuing a new type of security-a 2-year floating rate note (FRN)-in January 2014. The FRN pays interest at a rate that resets periodically based on changes in the rate of the 13-week Treasury bill (to which the FRN is indexed). GAO was asked to review Treasury debt management, including this product and other debt management issues. This report (1) evaluates Treasury's rationale for introducing FRNs and (2) identifies the demand for Treasury securities from a broad range of investors to assess whether changes would help Treasury meet its goals. To address these objectives, GAO used Treasury auction data from 1980 - 2014 to simulate the costs of Treasury FRNs, reviewed Treasury documents, surveyed a non-generalizable sample of 82 large domestic institutional investors across sectors, and interviewed market participants and academic experts. (For the survey and results, see GAO-14-562SP.)

Also in

General Reference

View All