U.S. Treasury Adds Floating Rate Notes (FRNs) to Fixed Income Mix; Investment Grade Corporate FRNs Continue to Offer Higher Yielding Alternative

NEW YORK--(BUSINESS WIRE)--With the sale of its first tranche of two-year floating rate notes (FRNs), the U.S. Treasury introduced a new debt instrument into a market already grappling with the Federal Reserve tapering and emerging market volatility. While these new notes may represent an ultimate in a low-risk investment, they offer little in the way of return for yield-hungry investors, according to Fran Rodilosso, fixed income portfolio manager with Market Vectors ETFs.