To all of the municipality bond traders, how about giving an opinion on "swaps" and "refunding" as outlined in this this posting. Thanks. âWHEREAS, the Outstanding Loan Agreement currently bears interest at a rate in excess of market rates because the Authority Bonds funding the â¦Agreement are insured by Financial Security Assurance, Inc. which has been downgraded byâ¦rating agencies, causing the â¦Bonds to be purchased by the provider of the Standby Bond Purchase Agreement ⦠at a higher rate of interest;â âWHEREAS, the Board of County Commissionersâ¦in order to provide the funds necessary to accomplish the refinancing of a portion of the Outstanding Loan Agreement on a temporary basis until alternative financing can be authorized, structured and issued, it is necessary to issue general obligation refunding bonds of the County⦠âThe County Mayor is authorized to (i) change the dated date of the bondsâ¦(ii) to change the designation of the bonds⦠(iii) to change the first interest payment date on the Bonds⦠(iv) to adjust the interest payment frequency⦠(v) to adjust the principal and interest payment dates and maturity amounts of the Bonds⦠(vi) to change the Countyâs optional redemption provisions of the Bondsâ¦and (vii) to sell less than the authorized principal amount of Bondsâ¦â âThe County Mayor is authorized to award the Bonds to the bidder whose bid results in the lowest true interest cost to the County, as determined by the County Mayor⦠The sale of the Bonds by the County Mayor shall be binding on the County⦠*** âWHEREAS, JP Morgan has denied a request to renew the â¦Liquidity Agreement and neither the County nor its advisors has been able to obtain a replacement provider of Liquidityâ¦and, consequently, the⦠Bonds cannot be remarketed;â¦â ââ¦the County is now required to reamortize the principal repaymentâ¦inâ¦equal quarterly payments over the next seven yearsâ¦at a rate determined under the JP Morgan Liquidity Agreements that is substantially greater than the variable rates previously borneâ¦â âWHEREAS, the Countyâ¦may issue its General Obligation Refunding Bondsâ¦in part, for the purpose of refinancing a portion of the quarterly payments coming dueâ¦as interim financingâ¦â âWHEREAS, Ambac Assurance Corporationâ¦guaranteed payment of the principal of and interest on theâ¦Bondsâ¦. and; WHEREAS, in 2008, Ambacâs ratings were downgradedâ¦and WHEREAS, under the â¦Liquidity Agreement and from time-to-time upon remarketing, the County is now paying interest rates substantially greater than the variable rate previously borneâ¦â âWHEREAS, the County has been advised that it will not be able to obtain Liquidity under reasonable economic terms at this time" âThe final maturity payment reflects the remaining outstanding principal amount of the original Outstanding Loan Agreements and it is anticipated that such remaining principal amount will be refinanced at or prior to maturity of the related refinancing Loan Agreement.â
1) I haven't attended law school. 2) I believe that you are on the verge of being "reamed". 3) Bondholders are being offered a choice of lubricants: Vaseline, KY or AstroGlide.