The new coupons are lower and maturities are longer, with limited issuance of short-term Treasury bills. In addition, several of the new instruments will be redeemed in tranches rather than as bullets, enabling a gradual reduction in the debt stock.
An added feature of some of the new securities structures is a Natural Disaster Clause, which takes account of our nation’s vulnerability to natural disasters by affording Government the option to defer debt service payments, on the occurrence of a catastrophic weather event.