KBRA Releases Research – A Negative T-Bill Print Is Not NIRP

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases a special comment on negative interest rates. In the report, KBRA discusses why it remains convinced that the Fed is unlikely to respond to the current pandemic with negative rates, a policy that would be a concern to all fixed income investors in the U.S. Rather, KBRA believes that the Fed would adhere to its zero interest rate policy (ZIRP).

While the Fed may not implement negative rates as a policy tool, the report explains why secondary market transactions below the zero-lower bound are still possible, as occurred on March 18, and reviews past experience with 4-week Treasury bills going negative between December 2008 to December 2015.

To view the report, click here.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Ethan M. Heisler, CFA, Senior Director
+1 (516) 359-0975
eheisler@kbra.com

Van Hesser, Chief Strategist
+1 (646) 731-2305
vhesser@kbra.com

Business Development Contact:

Kai Chan, Senior Director
+1 (646) 731-2303
kai@kbra.com

Contacts

Analytical Contacts:

Ethan M. Heisler, CFA, Senior Director
+1 (516) 359-0975
eheisler@kbra.com

Van Hesser, Chief Strategist
+1 (646) 731-2305
vhesser@kbra.com

Business Development Contact:

Kai Chan, Senior Director
+1 (646) 731-2303
kai@kbra.com