"Not eating chard. That's what all those weirdos eat at their stupid picnics on the Hungry Ghost lawn." -Nina

March 06, 2008

Cost Of Bond Insurance For The City Of Northampton In 2007

Responding to follow up questions relating to this post, Northamptonist asked Northampton's Finance Director Chris Pile, "Does Northampton buy bond insurance? under what circumstance? from who, and at what cost?", Chris writes,

In answer to your question, generally we buy insurance when the cost of the insurance will be offset by the reduced cost of the borrowing (more favorable interest rate due to better rating). This means that the larger the issue, the more likely we are to purchase the insurance to lower our cost. Last Spring we issued $9.273 million and paid $17,100 for insurance from GIFG Assurance North America.
LABELS: city finance, chris pile