I would like to know what that means.
In the spring of 2012, the Auditor General did a study on interest-bearing debt. He looked at the models used by debt managers. Here is what he had to say:
The model's recent results show the advantage of issuing more short- and medium-term bonds rather than issuing long-term bonds. The model shows that such strategies, while improving the debt structure in the long run, would also reduce risks of increased interest charges.
The Auditor General's recommendation also took into account the rollover risk.
I understand that the government wants to provide longer-term funding with relatively lower interest rates. In this instance, should the government aim for a different composition of interest-bearing debt, heading toward long-term debt instead, or should it still be cautious and diversify the debt, as it has done so far?