We’ve written a number of articles talking about financial forecasting being a necessary evil, implied forward yields being miserable predictors of realized yields, and recently the inappropriate use of option pricing models (requiring market-based inputs) when doing refunding analysis. We even wrote a paper on it as we see a lot of misunderstanding by pubfin practitioners on this point.
Read MoreTopics: financial forecasting, press
In the 2nd post on the topic, Dan Cooreman of the Sunday Business section indicated that the problems Gretchen Morgenson spoke to in her article,The Swaps That Swallowed Your Town, were in fact related to the variable rate instruments. He seemed to agree with exactly my point but ultimately, my final words (below) to the Times editors on the topic have gone unanswered.
Topics: municipal swaps, press, swaps that swallow town
"Knit Cap Creates Huge Hangover" is Not a Good Headline
Topics: Wall Street, SIFMA, public finance, swaps, municipal swaps, press
