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HomeMy WebLinkAboutIR 8980• the Mayor and Members of the City Council SUBJECT: Current Status of the Financial Markets '11V frips If there is additional information you would like prior to the meeting on Tuesday, please feel free to contact Karen Montgomery at 817.392.6222. r*- . . City Manager Attachment ISSUED BY THE CITY MANAGER FORT WORTH, TEEMS First Southwest C=pW Memorandum goo 325 North St. Paul Street Suite 800 W. Boyd London, Jr. Dallas, TX 75201 -3852 Laura B. Alexander 214 /953 -4013 Boyd blondon@firstsw.com 817/332 -9710 Laura lalexander@firstsw.com Date: September 17, 2008 To: Karen Montgomery Cc: Larry Jordan, U. S. Williams, Nicole Roberts Subject: Current State of the Financial Markets State of the Tax - Exempt Bond Market Generally speaking, the financial markets are under stress and in unchartered waters. The municipal bond market is no exception. In the last two days, bond market indices have risen over 0.40 %. Short term interest rates that are set weekly are up as much as 4% from last week. As of today, the bond market still has no firmness as interest rates continue their rise. As a result, many bond sales are being postponed. Impact of the City of Fort Worth Since the City has completed its financing needs for the next few months, the market disruption does not have an immediate impact on the City. The City's outstanding bonds were all issued with foxed rates such that the payments on the City's bonds are fixed and not subject to the volatility. Currently, the City has no outstanding commercial paper notes and no plans to issue notes. The most immediate impact on the City is that Lehman Brothers is the dealer on the Water & Sewer commercial paper program. Since Lehman is still operating, the commercial paper program is still considered viable. Changing the dealer will be an expense to the City. As such, we will monitor Lehman's status and evaluate the need for a change over the next several weeks. Please call with any questions. 'i GMs corm ins for iwonm~ of*, net art offiar, sok[tat€on or nor an official confkmztior� of any fkwovW transactirsn, it is rsca to be considered research. Thy in wont or: is cormid red to be rsW bta, but t`ist Souttrwest CorrVetry doers rcpt warrant as connAstaness or soetHacy, pricas and &VORM Y are subject to change witAOUt notice. We may trade, have "or short po"ions, or act w a m least n>ker in airy Peru xuW instrw*nt distxrssed hemut t.kw is shwld conssdt then own advisors regarding arty arxounb% ** or ter aspects. investors are instructed to read the enUv OfficW 5tatsmem to obtain infanrA tan esswihsl to the makmV of an infomrwd ww"tment decision.