A worrying sign of what the US credit crisis could mean for US seaports emerged this month when the interest rate on US$100M of bonds issued by the Port Authority of New York and New Jersey spiked from 4.3% to 20% in one week.
Port authorities have taken advantage of the lower interest rates available through auction-rate bonds where rates are set by the market in auctions, usually once a month. The high quality of port authority debt enabled ports to get good rates that were subject to little fluctuation.
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This complete item is approximately 450 words in length, and appeared in the February 2008 issue of WorldCargo News, on page 7. To access this issue download the PDF here.
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