I've read various threads about treasury floating rate notes and would like to know if anyone holds these and what role the notes serve in their investment strategy.
To be super clear, I'm talking about these: https://www.treasurydirect.gov/marketab ... ate-notes/
FRNs are interesting investments... 2-year maturity, but the interest rate is the sum of a spread determined at auction plus the rate of the most recent 13-week T-bill auction (adjusts weekly). The low duration relative to maturity seems unique.
As noted in other threads here, there is virtually no secondary market for FRNs for individual investors. In this post, a member here was able to sell an FRN, but it took 6 attempts.
To be super clear, I'm talking about these: https://www.treasurydirect.gov/marketab ... ate-notes/
FRNs are interesting investments... 2-year maturity, but the interest rate is the sum of a spread determined at auction plus the rate of the most recent 13-week T-bill auction (adjusts weekly). The low duration relative to maturity seems unique.
As noted in other threads here, there is virtually no secondary market for FRNs for individual investors. In this post, a member here was able to sell an FRN, but it took 6 attempts.
Statistics: Posted by blortchplop — Sun Sep 15, 2024 3:43 pm — Replies 4 — Views 164