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valuevulture999 (72.97)

April 2011

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WTC experiences funding problems!

April 19, 2011 – Comments (2)

It looks like the municipal bond roller coaster is dishing out more pain again. It began last year with California on the verge of bankruptcy. Things got so bad there that they had to pay their bills in scrip. For those of you not familiar with this, it’s like writing an IOU on a post it note. Try taking this to the bank! Since then, it’s been nothing but a roller coaster of woe from sea to shining sea. Now financing for the World Trade Center Tower #4 is the latest casualty.

If this was a perfect world they would have raised the $1.3 billion necessary to help fund this building project, but it’s experienced delays due to market conditions. The deal was broken down to $900 million of fixed rate debt and $375 million in floating rate bonds. The problem was that no one showed up for the party. This has been a recurring theme since last December when investors began dumping all forms of municipal debt from their investment portfolios. Let’s go over why this is happening and how you can gain an advantage!  [more]

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