TITLE

New Britain, Conn., Sells $58 Million Swaption to France's Societe Generale

AUTHOR(S)
Piazza, Johanna
PUB. DATE
April 2003
SOURCE
Bond Buyer;4/17/2003, Vol. 344 Issue 31617, p40
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
After months of internecine grappling over the use of a complex derivative, New Britain, Connecticut, signed off on an agreement in May 2003 to sell an option for a fixed-to-floating rate swap on 58 million dollars of the city's outstanding bonds sold to finance fire and police department pensions. The contract gives the French bank Societe Generale, currently rated Aa3 by Moody's Investors Service, the option to exchange interest rate payments in two years on 58 million dollars of the city's taxable fixed-rate pension bonds. Under the European model adopted in the contract, if the investors choose not to exercise their option on that single date in April 2003, the contract will become null. But if Societe Generale SA does elect to exercise it, New Britain will be bound to pay the Libor rate to the French bank for the next 16 years, until the pension bonds retire in 2021.
ACCESSION #
9766487

 

Related Articles

  • Merry-go-round continues for Asian ABS pros. Davies, Rob // Asset Securitization Report;11/8/2004, Vol. 4 Issue 43, p22 

    Reports on the performance of asset-backed securities in Asia. Expectation for more migration within the securitization groups at Calyon Securities, Moody's Investors Service Inc., Nomura Securities Co. Ltd. and Societe Generale SA (SG); Departure of Christopher Chau as head of Asian...

  • UK banks set for downgrade, suggests report. Thomas, Paul // Fundweb;6/21/2012, p1 

    The article informs that a raft of credit rating downgrades are expected to be announced by ratings agency Moody's Investors Service Inc., to major world banks, like Royal Bank of Scotland, and HSBC. According to the report by Sky News, Societe Generale SA, Goldman Sachs, BNP Paribas, and Morgan...

  • Moody's Downgrades Allegheny County, Pa.  // Bond Buyer;12/13/2004, Vol. 350 Issue 32028, p1 

    Reports on the reduction of the general fund balance of Moody's Investors Service Inc. in Pennsylvania.

  • Soc. Gen. Turns to Dollar Alternatives.  // American Banker;9/13/2011, Vol. 176 Issue 141, p16 

    Brief information is given about European bank lender Société Generale SA which is adapting to changes in the U.S. money market funds and is seeking alternative sources of dollar financing.

  • MH DEAL DOWNGRADED.  // National Mortgage News;11/8/2004, Vol. 29 Issue 9, p18 

    Reports that Moody's Investors Service downgraded mezzanine and subordinate certificates of the Manufactured Housing Contract Trust 2002-A securitization.

  • Fitch and Moody's diverge on Peru telecom deal.  // Asset Securitization Report;12/6/2004, Vol. 4 Issue 47, p23 

    The article reports on opinion differences over a telecommunication deal between Moody's Investors Service Inc. and Fitch Ratings Inc. Moody's Investors Service Inc. downgraded 35 million U.S. dollar outstanding of a securitization originated. The ratings now have a three-notch difference....

  • Struggling Chicago Schools Put Capital Spending on Short Leash. Shields, Yvette // Bond Buyer;5/7/2015, Vol. 1 Issue 34305, p1 

    Struggling to close a $1 billion budget gap, Chicago Public Schools will curtail capital spending in its next budget and take aim at its teachers' labor contract.

  • Rosbank CC Deal Moves Up but Sector Stays Still. F. O. // Asset Securitization Report;7/28/2008, Vol. 8 Issue 30, p17 

    The article reports on the decision of rating agency Fitch Ratings Ltd. to upgrade the rating of the $300 million outstanding future-flow credit card issuance from Russian bank Rosbank. The increase in rating came two weeks after Moody's Investors Service Inc. elevated its rating on the deal to...

  • Chiefs mull letter to regulator on rules.  // Fund Strategy;9/19/2011, p2 

    The article focuses on the new ethical fund launched by Clerical Medical Investment Group Ltd. The 20 million pounds is being managed by fund manager Neil Easterbrook and aims at holding a portfolio of around 40-70 European stocks. Also discussed is the rating by Moody's Investors Service Inc....

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics