Using Variable Rate Debt Instruments

Best Practice
Approved by GFOA's Executive Board: 
May 2011

The Government Finance Officers Association (GFOA) recommends governments who plan to use variable rate debt to exercise caution and carefully evaluate their objectives and consider how this debt and the various risks associated with it will be managed over the long-term. Issuance of variable rate debt should be guided by the government’s overall financial and debt management objectives and its financial condition. In particular, an issuer should: