:: Sunday, July 05, 2009

Home » Blogs » auction rate securities

An auction rate security generally refers to a debt instrument with a long-term nominal maturity for which the interest rate is regularly reset through periodic auctions. It allows issuers to borrow for the long-term but at lower, short-term interest rates.
The auction-rate securities market involved investors buying and selling instruments that resembled corporate debt whose interest rates were reset at regular [...]

Tags: , ,

Subscribe to Citizen Economists

Vote on Wikio

Bookmark & Share
 


Copyright © 2008 Citizen Economists. All rights reserved.