Floating rate notes?
Posted: Wed Feb 06, 2013 12:05 pm
Would love to get the response of Craig and others here. Hopefully it'll be Keep It Simple, Stupid and just keep on doing what you're doing. But, just in case....
http://online.wsj.com/article/SB1000142 ... 52738.htmlWASHINGTON—The U.S. plans to issue floating-rate notes within the next year, though first it must resolve how to set the adjustable rates on the securities.
The Treasury Department announced plans last year for debt securities with rates that periodically reset either up or down but previously left the timing of their debut open-ended. The main unresolved question for the Treasury is which index will control the notes' interest rates, a sensitive issue for bond investors, especially after allegations that bankers rigged the London Interbank Offered Rate, or Libor.
Floating-rate notes would be the first addition to the department's products in more than 15 years, potentially expanding the Treasury's investor base and helping extend the maturity of government debt.