CHICAGO — Detroit’s newly filed 2012 comprehensive annual financial report warns that the city faces a substantial challenge from costly pension bond derivatives, including possible interest-rate swap termination payments as high as $440 million.

The city filed its CAFR on Dec. 31, 2012, marking the second timely filing in a row after years of late audits. The city is required to file its annual audit on time in order to secure its regular revenue sharing payment from the state.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.