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)
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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.