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Article: Los Angeles County is planning to sell inverse floater without using auction.
- Article from:
- The Bond Buyer
- Article date:
- November 12, 1991
- Author:
CopyrightCOPYRIGHT 1991 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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LOS ANGELES -- Los Angeles County today plans to sell a variation on inverse floating-rate securities that eliminates the need for holding periodic auctions to set the short-term interest rate portion of the deal.
So-called inverse floaters have become more popular with the municipal market in recent months, based on underwriters' assertions that the product can lower the overall interest cost for issuers and also meet the needs of both short- and long-term investors.
Unlike previous inverse floater deals -- which divideda conventional long-term fixed-rate bond into two floating-rate parts for short- and long-term buyers -- there will be no short-term ...