New York’s Metropolitan Transportation Authority’s $30.1 billion of outstanding debt contains about $5.2 billion of variable-rate debt, of which $3 billion is in synthetic fixed-rate mode achieved through interest-rate swaps, according to a derivatives portfolio report.

The authority’s finance director, Patrick McCoy, who introduced the report at last Monday’s finance committee meeting, said synthetic fixed-rate debt has been a cost-effective source of capital, costing less than fixed-rate bonds at the time of issuance.

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