Arena lawsuit over - Kings win! (retitled)

[John Galt]

imho (but it might be fact I'm not sure): The direction and timing of interest rates are not certainties. If they were, then everybody would be rich from playing the bond market.

I suspect there are guidelines and limits on the extent to which the city would have been legally allowed to "play the market" as far as timing the interest rates (could they legally/ethically wait a month or two anticipating that rates would go one way or the other?). That is a dangerous game - it's basically gambling.

 

[hrdboild]

Please stop confusing the Fed Funds and Dusvoubt rates with bond yields. There is some correlation, but it's not applicable here.

I know nothing about finance, I'm just commenting on what was reported. The article I read in the Bee threw out $80 million dollars a worst-case scenario back in March and within the article itself they stated that the expected interest rate at the time the bonds were approved had already fallen (from 6.7% to 5%) by the date the article was written. So just within the context of the article, it seems you could argue both that the lawsuit cost the city money (because we couldn't issue the bonds in March) and saved us money (because even if they go back up to 6% from March to July, they're still lower than they were when the deal was approved).

 

[PurpleHaze]

No appeal - now sale of bonds can go forward quickly - before interest rate rise.

http://www.sacbee.com/news/local/city-arena/article30180615.html

 

[PurpleHaze]

Bond sale finally complete. Now just awaiting new arena opening on schedule with crews working hard 24/7 to make it happen.

http://www.sacbee.com/news/local/city-arena/article36414231.html