As of the end of may, what would be jefferson county’s expected cost

Outside Audit

Don't use plagiarized sources. Get Your Custom Essay on
As of the end of may, what would be jefferson county’s expected cost
Just from $13/Page
Order Essay

Sweet Hedge Alabama: A County Defends Rate-Swap Strategy


Staff Reporter of THE WALL STREET JOURNAL June 8, 2005; Page C1

Jefferson County, Ala., is counting on a large portfolio of sophisticated interest-rate swaps to help save millions of dollars on pedestrian public-debt projects like a new sewer system.



Federal authorities are hoping the county’s finances don’t go down the drain instead. Critics point out that the swaps currently cost taxpayers money.

Welcome to the front of a growing debate over the use of swaps by municipal governments. In their most basic form, interest-rate swaps allow parties to trade exposure to fixed- and floating-rate debt. Swaps are often used by companies, and traders, including hedge funds, often take swap positions.



Wall Street banks, such as J.P. Morgan Chase and others, and boutique municipal underwriters like Rice Financial Products in New York have been pitching local governments on swaps that can help reduce debt — or greatly magnify it. Some of the terms of these swaps are complicated and reset frequently.



The proliferation of swaps among smaller municipalities in recent years “concerns me because these things are complicated,” says Martha Haines, chief of the Securities and Exchange Commission’s municipal-securities unit in Washington. “I’m concerned that little guys are getting in and don’t know what they’re doing.”



Towns of various sizes are turning to swaps. But Jefferson County — population 660,000, about one- third of whom live in Birmingham, and 2004 revenue of $534 million — has exposure that rivals some of the biggest hedge funds: 18 interest-rate swaps with a notional, or total underlying value, of $5.8 billion. By way of comparison, Houston — the Texas town of two million people with 2004 revenue of $2.6 billion and about 80% more debt than Jefferson County — has two swaps with a total notional value of $850 million.



Bankers and consultants say Jefferson County has the biggest swap exposure for a government of its size, and the portfolio is raising eyebrows.

“The fact that they’re doing all of these trades indicates they’re speculating,” says Robert Whaley, a business-school professor of finance at Duke University in Durham, N.C. “The question is whether they have any expertise.”

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

At, we value all our customers, and for that, always strive to ensure that we deliver the best top-quality content that we can. All the processes, from writing, formatting, editing, and submission is 100% original and detail-oriented. With us, you are, therefore, always guaranteed quality work by certified and experienced writing professionals. We take pride in the university homework help services that we provide our customers.

Money-Back Guarantee

As the best homework help service in the world, 111 Papers ensures that all customers are completely satisfied with the finished product before disbursing payment. You are not obligated to pay for the final product if you aren’t 100% satisfied with the paper. We also provide a money-back guarantee if you don’t feel that your paper was written to your satisfaction. This guarantee is totally transparent and follows all the terms and conditions set by the company.

Read more

Zero-Plagiarism Guarantee

All products that we deliver are guaranteed to be 100% original. We check for unoriginality on all orders delivered by our writers using the most advanced anti-plagiarism programs in the market. We, therefore, guarantee that all products that we submit to you are 100% original. We have a zero-tolerance policy for copied content. Thanks to our strict no plagiarized work rule, you can submit your homework to your professor without worrying.

Read more

Free-Revision Policy

TThis is one of the most cherished courtesy services that we provide to help ensure that our customers are completely satisfied with our finished products. Delivering the best final product to our customers takes multiple inputs. prides itself on delivering the best university homework help services in the writing industry. And, in part, our free revision policy is how we do it. What’s more, all our revisions are 100% free without any strings attached.

Read more

Privacy Policy

Client privacy is important to use. We know and understand just how important customers value their privacy and always want to safeguard their personal information. Thus, all the information that you share with us will always remain in safe custody. We will never disclose your personal information to any third party or sell your details to anyone. 111 Papers uses the most sophisticated, top-of-the-line security programs to ensure that our customers’ information is safe and secured.

Read more

Fair-Cooperation Guarantee

Placing your order with us means that you agree with the homework help service we provide. We, in turn, will endear to ensure that we do everything we can to deliver the most comprehensive finished product as per your requirements. We will also count on your cooperation to help us deliver on this mandate. Yes, we also need you to ensure that you have the highest-quality paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages