Variable Rate Obligations Available on 1812.io
Variable Rate Obligations have interest rates that are set at specified intervals according to market conditions or a predetermined index or formula. Whether issued as Variable Rate Demand Obligations or Auction Rate Securities, these structures provide Public Agencies the option to issue long-term debt that has interest rates more closely tied to the short
end of the yield curve.
While there are good financial reasons to issue Variable Rate Obligations, managing them is more complex than managing fixed rate debt because there are so many moving pieces.