Debt Management: Buybacks Can Enhance Treasury's Capacity to Manage under Changing Market Conditions [Reissued on March 21, 2012]

United States. Government Accountability Office.

United States. Government Accountability Office.

关键词: Government accountability -- United States.;    budget and spending;    debt management;    letter report;   

RP-ID  :  GAO-12-314
RP-ID  :  589079

美国|英语

来源: UNT Digital Library

【 摘 要 】

A letter report issued by the Government Accountability Office with an abstract that begins "Debt buybacks can help advance Treasury’s goals under a variety of budget and market conditions. For example, Treasury currently faces rollover peaks—large increases in the amounts of maturing debt that must be refinanced at a given time—which expose Treasury to the risk of refinancing large amounts of debt when interest rates are less favorable. All four of our case study countries use debt buybacks to mitigate rollover risk. Buybacks can also be used to enhance liquidity, which can be adversely affected when the growth in borrowing slows rapidly and issue sizes decline significantly. GAO’s illustrative analysis of Treasury’s past buyback program showed that, had Treasury refinanced the debt by simultaneously issuing new debt, it could have captured a liquidity premium—the additional price investors are willing to pay for securities that can be easily traded—which would reduce interest costs."