CHICAGO - While the St. Louis transit agency Metro lacks the headache of dealing with any outstanding auction-rate securities in its own debt portfolio, it's concerned about that market's collapse because of its role as an investor that's now looking, like most others, to shore up its own liquidity.

Metro currently holds about $28 million of the $3.5 billion of auction-rate securities that are part of the Missouri Higher Education Loan Authority's overall $5 billion tax-exempt and taxable bond portfolio. Metro has placed sell orders on its outstanding balance but the auctions have failed due to a lack of buyers. The $28 million invested in MOHELA represents about 18% of Metro's overall investment portfolio, according to Metro's treasury manager Mark Carroll.

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.