CHICAGO - The market for variable-rate demand obligations was calmer Friday after experiencing one of its rockiest weeks in recent memory, with weekly and daily remarketings failing for some outstanding issues and interest rates skyrocketing for others.

Turmoil in the large but opaque VRDO market comes nearly seven months after the upheaval in the auction-rate securities market. The ARS market collapsed in mid-February when firms that historically supported the auctions of the securities, but were under no contractual obligation to do so, stopping propping them up.

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.