Extending Duration: One Chunk or Several Pieces?

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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.
 
For over 20 years, iTreasurer has delivered intelligence for treasurers. Based on exclusive access to senior treasury executives who are members of The NeuGroup Network of treasury peer groups, iTreasurer takes their real-world experience to produce articles, case studies and reports that are specifically meaningful to treasury best practice. www.iTreasurer.com.
 
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