Go-Around

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DEFINITION of 'Go-Around'

A strategy used by the Federal Reserve to receive the highest return on securities. The Federal Reserve solicits bids/offers from the primary dealers to receive the best deal whether it be for buying, selling, reversals or repurchase agreements.

INVESTOPEDIA EXPLAINS 'Go-Around'

This strategy applies to all forms of U.S. Treasury Bills, Treasury Bonds, etc. In soliciting to the primary dealers (institutions that are permitted to deal new issues of government bonds), the Federal Reserve System is able to obtain the highest possible returns.

RELATED TERMS
  1. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  2. Primary Dealer

    A pre-approved bank, broker/dealer or other financial institution ...
  3. Security

    A financial instrument that represents: an ownership position ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with ...
  5. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
  6. U.S. Treasury

    Created in 1798, the United States Department of the Treasury ...
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