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Article: Yen-denominated deal will help New York City achieve more variable-rate debt, officials say.
- Article from:
- The Bond Buyer
- Article date:
- March 11, 1993
- Author:
CopyrightCOPYRIGHT 1993 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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For the past year, New York City finance officials have billed a planned sale of taxable yen-denominated bonds as a sophisticated attempt to lower borrowing costs by stretching the city's investor base to foreign lands.
In recent weeks, however, city officials working on the potential $150 million issue have acknowledged they are also using the transaction to meet an equally important financing goal - to issue more variable-rate debt.
City officials, who originally planned to create a fixed-rate liability, say they have recently designed the yen deal as a floating-rate transaction for a number of reasons.
Under current market conditions, they ...