NEW YORK City has opened a new chapter in the history of US municipal debt with the first securitisation of a whole revenue stream. The New York Transitional Finance Authority is authorised to issue $7.5bn worth of bonds, secured on a first call over the city's entire personal income tax take. The new authority will also be the first municipal funding arm to borrow at a higher rating than the parent government. Its debt will be rated AA by Standard & Poor's, A2 by Moody's, AA+ by Fitch and AAA by Duff & Phelps.
September 12, 1997