Wednesday, August 13, 2014

Risky & Controversial: Capital Appreciation Bonds

Risky & Controversial 
Capital Appreciation Bonds

Calaveras Unified School District is noted in spreadsheet below as having financed 
Capital Appreciation Bonds in 2007 & 2008
SPREADSHEET: Capital appreciation bonds
Hun­dreds of Cali­for­nia school and com­munity col­lege dis­tricts have fin­anced con­struc­tion pro­jects with cap­it­al ap­pre­ci­ation bonds that push re­pay­ment far in­to the fu­ture and ul­ti­mately cost many times what the dis­trict bor­rowed. Gov­ern­ment fin­ance ex­perts con­sider bonds im­prudent if the total cost is more than four times the money bor­rowed or the ma­tur­ity peri­od is great­er than 25 years.  Published: Nov. 28, 2012
RELATED ITEMS: California school districts face huge debt on risky bonds

California schools asked to put moratorium on controversial bonds
State's treasurer and schools chief ask districts to avoid capital appreciation bonds until governor and lawmakers can weigh proposals to restrict their use.
January 18,  2013|By Dan Weikel, Los Angeles Times


Risky bonds tie schools to huge debt
About 200 districts in California may have to pay as much as 10 to 20 times the amount borrowed.
November 29, 2012|Dan Weikel


Long-term payment bonds dig big hole for schools
Thursday, January 31, 2013
KGO TV San Francisco CA


CAPITAL APPRECIATION BONDS: THE CREATION OF A
TOXIC WASTE DUMP IN OUR SCHOOLS (2012)


                                       

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