@article {Babbel71, author = {David F. Babbel and Cindy W. Ma and Bing J. Ni}, title = {The Usefulness of Inverse Floaters}, volume = {26}, number = {2}, pages = {71--80}, year = {2000}, doi = {10.3905/jpm.2000.319740}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Inverse floaters are sometimes characterized by the popular financial press in unfavorable terms, particularly with respect to their reported role in a number of municipal financial crises during the mid{\textendash}1990s. In this article, the authors show how inverse floaters can be used in conjunction with government bonds and repo leverage to create attractive risk{\textendash}return profiles and stable income over a wide variety of economic scenario. Inverse floaters can be particularly attractive during periods of steep yield curves.}, issn = {0095-4918}, URL = {https://jpm.pm-research.com/content/26/2/71}, eprint = {https://jpm.pm-research.com/content/26/2/71.full.pdf}, journal = {The Journal of Portfolio Management} }