Extending Duration: One Chunk or Several Pieces?
Use this calculation model to compare the cost of issuing long bonds versus multiple short bonds.
In a world of historically low interest rates, what is the cost of issuing long-term debt vs. short-term debt? Or more specifically, how do you put a number to the price of extending duration? This is a question that Societe Generale debt capital markets executives were presented with this year when a client was looking at how it could save money issuing debt. iTreasurer explores the bank’s solution in a new report, featured in the January issue.
Read this free report to learn how Societe Generale's duration extension calculation model can help you:
• Compare the discounted cash flows of various bonds
• Identify a breakeven point that can help you understand how risky the multiple short-bonds strategy was vs. one long bond
• Determine the cost of extending duration in a variety of scenarios
• Gain clarity on your company’s debt program.
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