First Union Corp. recently acquired the future investment servicing rights to a $643 million bond issue sold by the Pennsylvania Intergovernmental Cooperation Authority (PICA).

The issue's reserve fund was invested in a guarantee investment contract paying less than the issue's 5.74 percent coupon; PICA was losing about $5 million in interest. So PICA put the servicing business up for sale, which First Union won by offering $7 million.

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.