TY - JOUR T1 - The Usefulness of Inverse Floaters JF - The Journal of Portfolio Management SP - 71 LP - 80 DO - 10.3905/jpm.2000.319740 VL - 26 IS - 2 AU - David F. Babbel AU - Cindy W. Ma AU - Bing J. Ni Y1 - 2000/01/31 UR - https://pm-research.com/content/26/2/71.abstract N2 - 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–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–return profiles and stable income over a wide variety of economic scenario. Inverse floaters can be particularly attractive during periods of steep yield curves. ER -