4/21/2008

U.S. states and the Securities and Exchange Commission are among those investigating the virtual disappearance of the auction-rate bond market. Citigroup predicted last week that the $330 billion market that started to unravel in February will "cease to exist." Borrowers are replacing the bonds, whose yields are set through periodic auctions, because the market's collapse raised borrowing costs for taxpayers to as high as 20%.

Full Story:
Bloomberg

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