After New Jersey refinanced or converted all of its $3.4 billion of auction-rate debt earlier this year, state Treasury officials decided to evaluate whether the state would have been better off having sold fixed-rated bonds instead.

They found that despite the recent spike in auction-rate costs after the market for such securities imploded earlier this year, New Jersey still came out ahead. The state actually generated a net savings of over $40 million by issuing auction-rate securities over the past few years.

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