Variable-Rate Demand Debt Dips as Auction Rates Rise

August 2003
Bond Buyer;8/26/2003, Vol. 345 Issue 31706, p1
Trade Publication
Reports that the prevailing low interest rate environment stunted volume for variable-rate demand obligations in the first half of 2003, prompting a decline in the amount of debt backed by letters of credit, according to a mid-year review from credit rating agency Moody's Investor Service. Impact of low interest rate on auction-rate bonds; Reasons for downgrading ratings of banks providing liquidity services; Way in which variable-rate demand bonds are affected by the lowering of interest rates.


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