• ConservativeElectedOfficial

    Do you believe municipalities should be allowed to engage in swap agreements using taxpayer dollars?

    • Defiant White

      No. Risk is much too high for the citizen.

      • David Priestley

        Swaps are simply a contract to fix rates for borrowers. They reduce risk of higher than expected future interest payments, but they do cost money.
        If variable interest rates stay low, they do not pay off – variable rate borrowing turns out to be less. If variable interest rates increase, the swaps save money for borrowers.
        Entering into a swap agreement along with a variable rate loan is the same as borrowing on a fixed rate. Borrowing at a fixed rate is also more expense if variable rates stay low for the life of the debt, just as entering a swap contract.

  • Hugh Beaumont

    I’d like to see an actual contract so I can make my own observations.

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