MassDOT loses chance to save nearly $70M
For months, the Massachusetts Department of Transportation had been working to take advantage of rock-bottom interest rates to save nearly $70 million over the next two decades by refinancing hundreds of millions in bonds.
But last week, just before the Federal Reserve raised its benchmark interest rate and bond markets continued to fluctuate, the agency was forced to halt its plans. The department still paid out about $770,000 during the failed process.
“It’s unfortunate that things didn’t line up perfectly,” said David Pottier, the chief financial officer of MassDOT.
“But nobody could really foretell that interest rates were going to spike like they did after the election.”
Read more: http://www.bostonglobe.com/metro/2016/12/17/massachusetts-department-transportation-loses-chance-save-nearly-million/PTIeRP3xIYHeEVMJ8G0r9L/story.html