The launch of the new Treasury floating rate notes has been a successful venture The initial auction for Treasury FRNs saw aggressive participation, with a high bid-to-cover ratio. The ratio came down slightly in subsequent auctions. Quarterly issuance has so far exceeded early predictions, and these securities have already assumed an important place in the…
The new Treasury FRNs are attractive not only for money market funds and institutions that roll T-bills within large liquidity or collateral pools, but also for other institutional investors intent on reducing interest rate risk within their fixed income allocation.
This survey-based report provides information on the general characteristics of clients’ outstanding debt, including tax status, interest rate type, sources used for debt service, credit enhancements, and plans for refinancing or new issuance.