But it is less obvious that the bargain 2 percent rate on these bonds should exert any influence on its capital spending plans. After all, it can take the proceeds of the bond issue and use these to pay down short-term debt, repurchase stock, or buy short-term securities. These capital-structure adjustments all yield an effective return of 3 percent.
3  Guidance for 2017 section 165(d) Annual Resolution Plan Submissions by Domestic Covered Companies that Submitted Resolution Plans in July 2015, available at www.federalreserve.gov/newsevents/pressreleases/files/bcreg20160413a1.pdf. 4  Id. -6aimed at ensuring that surpluses in one host jurisdiction generally are not relied upon to meet deficits in another host jurisdiction, given the confusion and vulnerabilities such reliance can cause in an actual stress.