Panel: Management, Not Set Levels, Key to VR Portfolios

O'Brien, Elizabeth
December 2005
Bond Buyer;12/7/2005, Vol. 354 Issue 32273, p6
Trade Publication
The article presents information related to variable-rate debt. Public officials should have a clear variable-rate policy and can describe why they practice different kinds of variable-rate debt and derivative products. With about $34 billion of outstanding general obligation debt, New York City goes to market and it can save money by issuing variable-rate bonds in today's environment of low interest rates. New York City has 18% of variable-rate exposure in its portfolio or 14% to 15% after subtracting short-term government assets in the city's general fund that can be used as a natural hedge against variable-rate risk if rates rise.


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