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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

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