Home      Login


Managing the Risk of Variable-Rate Debt in the Public Sector  


Author:  Jun Peng.


Source: Volume 23, Number 04, Winter 2003 , pp.1-16(16)




Municipal Finance Journal

next article > |return to table of contents

Abstract: 

Tax-exempt variable-rate (VR) debt has been in existence for approximately a quarter of century. Over this time period, especially after the creation of tax-exempt money market funds, it has evolved from something esoteric into an important debt instrument. This study examines the risks and benefits of VR debt, and more important, the risk-minimizing tools available to governmental issuers of VR debt.

Keywords: Variable-Rate Demand Notes

Affiliations:  1: Eller College of Business and Public Administration, University of Arizona.

Subscribers click here to open full text in PDF.
Non-subscribers click here to purchase this article. $25

next article > |return to table of contents