BRADENTON, Fla. - The Citizens Property Insurance Corp.'s finance committee yesterday green lighted a plan to take out all of the Florida insurer's remaining auction-rate securities and work on a replacement liquidity plan that includes a $1.5 billion short-term, fixed-rate bond transaction.

The state-run insurer has already purchased $2.4 billion of its own $4.75 billion of taxable auction-rate securities due to rising interest rates and negative arbitrage, and it has issued conditional 30-day call notices for early retirement of another $950 million of auction-rate securities as part of the plan to restructure its liquidity.

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.