Going going gone

Auction rate securities

risk-0408-30-gif

The liquidity drought that paralysed credit markets in December and January appeared to be receding a little during February, when the US auction rate security (ARS) market emerged as the latest victim of the credit crunch.

The little-known market, worth just $331 billion, unexpectedly hit headlines as municipal bonds issued by local governments, hospitals, schools and airports in virtually every US state suddenly found themselves contending with drastic hikes in interest rates as liquidity in t

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: