September 7th, 2019, 6:39 pm
If I were to ask this question, it would be to gauge the candidate's ability to deal with an ill-posed question and see whether they seek more information in a reasonable fashion or rush to provide some unsupportable conclusion. I don't like this question, but in that spirit I have been known to occasionally ask candidates what's riskier: a three month treasury bill or a 30 year treasury bond? I was once interviewed by the legendary Pete Mueller, and his first question to me was how much cash was in his pockets. Very annoying questions, but sometimes they can tease out some useful information. Seems to have worked in his case...
Going back to the original question, it is entirely unclear to me that you can obtain sufficiently cheap financing to make a net positive return by leveraging short duration treasuries.