3 ms·
> $39.0 billion U.S. Treasuries Par value or market value? If it’s the former the current value is surely less.
by kgwgk 4y ago
> $39.0 billion U.S. Treasuries
Par value or market value? If it’s the former the current value is surely less.
- ac29 4y agoWhy? Treasury bills are the appropriate choice here and are always bought at a discount to par.
- kgwgk 4y agoIf you bought $1000 worth of 1-year treasury bills (maturing in 12m) six months ago you have less than $1000 worth of treasury bills (maturing in 6m) today. That could be a problem if you need to recover today at least the $1000 that you put. (There may be no problem with much shorter maturities - or could be worse with bonds with longer maturity. The quote didn’t give any details.)