Durham, N.C., Moving Ahead With Long-Delayed Rice Swap

DeSue, Tedra
March 2006
Bond Buyer;3/8/2006, Vol. 355 Issue 32334, p3
Trade Publication
The article reports the decision by the City Council of Durham, North Carolina, to pursue a basis swap agreement with Rice Financial Products Co. According to city finance director Kenneth Pennoyer, the multiplier effect of the original proposal produces higher earnings but a bigger risk for greater losses. Pennoyer adds that the swap will enable the city to pay a percentage of The Bond Market Association index and receive a percentage of Libor.


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