New York City used an unusual structure and an interest rate swap yesterday to save 14 basis points on a portion of its $650 million offering of tax anticipation notes.

The note structure, which eliminates the need for credit enhancement and pays a floating rate based on the Public Securities Association's municipal swap index, was first used by California on a portion of a $2 billion issue in July.

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.