Financial Times FT.com

Collapse in auction-rate market takes its toll on US municipalities

By Aline van Duyn and Michael Mackenzie in New York

Published: February 14 2008 02:00 | Last updated: February 14 2008 02:00

A collapse in confidence in a $330bn corner of the debt market has left US municipalities and student loan providers facing spiralling interest rate costs.

The implosion of the so-called auction-rate securities market is the latest incarnation of the credit crisis.

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