Variable-rate bonds

What began as trouble in the housing and mortgage markets shook the whole world in 2008, including a municipal bond industry that had to learn to live without bond insurance, auction-rate debt and some big investment banks.

In their pleading, banks said the plaintiff is "precisely the sort of 'busybody' " that is prohibited from making such claims.

The whistleblower responsible for federal investigations and lawsuits accusing banks and broker-dealers of fraud and collusion in the remarketing of variable rate demand obligations will likely be forced to go public because of a recent ruling by Massachusetts’ highest court.

The amount of outstanding variable rate demand bonds rose to $142.4 billion in the second quarter of this year, a gain over $142.2 billion in the first quarter and the end of a decade-long decline, Moody’s Investor Service said in a recent report.

The authority, one of the largest municipal bond issuers, will use the new benchmark to reduce its exposure to Libor, which is slated to sunset.

The disclosure of some variable-rate demand obligation information on EMMA shouldn't be used to dismiss a lawsuit alleging fraud in VRDO remarketing,lawyers for the plaintiff told an Illinois court.

The Securities and Exchange Commission has sent letters to the 12 top banks and broker-dealers that remarket variable rate demand obligations, seeking information and documents on their remarketing and rate resetting practices.

New Mexico found a no-cost escape route from troublesome swap agreements with a $67 million termination fee.

An "anemic" first quarter gave way to a much stronger second quarter for the muni market, SIFMA found.

The California Academy of Sciences refinanced debt used to build its facility.

Will a lawsuit alleging a conspiracy in the VRDO market be dismissed early?

The authority, one of the largest municipal issuers, will substitute a Bank of Tokyo-Mitsubishi letter of credit with State Street.

Rising short-term rates and a lower corporate tax rate have already pushed some municipal issuers out of bank loans and back into the traditional muni space, analysts said.

Unhedged and hedged variable-rate debt each account for 6% of the authority's $37.3 billion of bonds outstanding, according to Patrick McCoy.

An unsealed whistleblower lawsuit accuses eight Wall Street and regional banks and broker-dealers that served as remarketing agents of fraud and collusion in resetting rates for variable rate demand obligations issued by state and local issuers in Illinois.

The authority is selling revenue variable rate refunding bonds.

Volume of $48.05 billion indicated a strong short-term need on both the buy-side and sell side of the municipal market.

Shorter calls and a shift in the use of floating rate paper are part of Wisconsin's toolkit after tax reform.

A new financial recovery plan was submitted to the Federal Transit Administration.