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A Mississippi County Wins a Wall Street Bet

机译:密西西比县赢得华尔街赌注

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Hinds County's purchase of interest rate swaps in 2006 and 2007 from Rice Financial Products,a New York deriv-atives dealer,promised to be another Wall Street deal that would cost a local government money. Officials in the Mississippi county,where one in four residents lives in poverty,didn't know what they were getting into, according to an audit of the county's finances published in 2008; for example, the officials who made the deal couldn't say how semiannual payments on the swaps were determined. Yet in the decade since the contracts were signed, Hinds County has netted $6.7 million from the swaps, thanks to collapsing short-term rates in the municipal bond market. "It's like walking out of the casino with $6 million," says Robert Brooks, a finance professor at the University of Alabama's Culverhouse College of Commerce in Tuscaloosa. "It could've gone the other way."
机译:Hinds County分别于2006年和2007年从纽约衍生品交易商Rice Financial Products购买了利率掉期合约,这是华尔街另一笔交易,将花费当地政府的钱。根据2008年公布的对该县财政状况的审计,密西西比州的官员们不知道自己所陷入的困境。密西西比州的居民中有四分之一的人生活在贫困之中。例如,达成交易的官员不能说如何确定掉期的半年付款。然而,自合同签订以来的十年中,由于市政债券市场的短期利率崩溃,Hinds County从掉期交易中获利670万美元。阿拉巴马大学塔斯卡卢萨分校卡尔弗豪斯商学院金融学教授罗伯特·布鲁克斯说:“这就像带着600万美元走出赌场一样。” “它本来可以反过来的。”

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  • 来源
    《Business week》 |2015年第4438期|43-44|共2页
  • 作者

    Martin Z. Braun;

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