Two recent record-breaking swaps from New Jersey and California look similar, but market sources say California earned sweeter bids by adding a feature New Jersey's swap lacked.

By allowing swap providers to also act as remarketing agents on the underlying variable-rate notes, California gave bidders more control over their ultimate costs, an advantage that several dealers said translated into basis point savings for the state.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.