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To: TigerLikesRooster; Uncle Ike; RSmithOpt; jiggyboy; 2banana; Travis McGee; OwenKellogg

Can someone give me a quick tutoring in this. I read the article and basically understand it but I am looking for more insight. Thanks.


3 posted on 03/09/2008 3:02:04 AM PDT by BJungNan
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To: BJungNan

Yes, bond buyers are getting nice returns.


5 posted on 03/09/2008 3:07:43 AM PDT by AmericaUnited
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To: BJungNan

Can someone give me a quick tutoring in this. I read the article and basically understand it but I am looking for more insight. Thanks.
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With the bond insurers failing buyers are demanding a higher interest rate be paid as the income generated from the project (rather than the rating of the insuring agency) is now the primary concern when it comes to repayment..

What Denver is seeing is nothing ,, these are small increases compared to what Orlando got hit with for the three vanity projects of our mayor ,, an arts center , a new stadium for the Orlando Magic and refurbing (again) the underutilized Orange bowl stadium ,, estimated at $1B ,, we are already over by $150M just in interest expenses as buyers see this as a boondoggle (they’re right) with none of the three ever able to repay their initial cost ,, instead we are relying on tourist taxes to pay for them just as we enter a long drawn our recession to pay the bills..


6 posted on 03/09/2008 3:15:36 AM PDT by Neidermeyer
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To: BJungNan

Interest rates reflect:

* Demand for debt (the market has little appetite for debt, these days) low interest = no interest from the market

* The risk that the debt won’t be repaid.

* The waning credibility of the rating agencies and bond insurers as means of assessing and mitigating risk.


15 posted on 03/09/2008 7:43:41 AM PDT by RFEngineer
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To: BJungNan

Municipal bond prices are falling. Might be some buying opportunities.


31 posted on 03/09/2008 10:18:47 AM PDT by RightWhale (Clam down! avoid ataque de nervosa)
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