CHICAGO - Until recently, veteran Columbus, Ohio, auditor Hugh Dorrian's only regret about the city's floating-rate debt portfolio was that he didn't have more of it.

But that changed three weeks ago, as disruption in the credit markets sparked a rise in variable interest rates - pushing rates on Columbus' floating-rate debt up to 7.76% from 1.6% in three weeks. The bonds remarketed weekly. The spike is costing the triple-A rated city up to $150,000 a week.

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