I still don't understand the details of these types of loans, but any municipal entity that would finance long-range projects with a variable rate loan needs to get better financial advice.

Typically, in the US, municipals are long-term (except for tax-anticipation notes), fixed rates and are sold to wealthy investors who like the fact that they are tax exempt.

Paying a set amount each year allows the agency to budget appropriately. The low liquidity of these bonds is supposed to be one of their "features". Buyers don't plan on selling them very often since they also want to see a steady income.

Imagine if all the talent that has gone into devising such complicated transactions had been redirected to more useful areas, like industrial planning, or designing sustainable social service funding, or even replacing capitalist growth with something based more on renewable resources.


Policies not Politics
---- Daily Landscape