Variable Rate Summary

Like other large bond issuers in the municipal market, the Commonwealth has issued variable rate bonds to fund the state's capital needs in addition to fixed rate debt. As of June 30, 2015, approximately 18% of the Commonwealth's outstanding debt was in the form of bonds (both hedged and unhedged) whose interest rates fluctuate, an amount equal to approximately $3.7 billion.

In order to diversify its investor base as well as its capital structure, the Commonwealth has accessed the variable rate market by borrowing through different bond structures. Some of the outstanding bonds pay interest based on periodic changes to market-based indices, some bonds are actively remarketed on a daily or weekly basis. Variable rate structures utilized include variable rate demand bonds, SIFMA Index bonds, LIBOR Index bonds, auction rate securities, and Consumer Price Index bonds.

For a summary of the Commonwealth's outstanding variable rate bonds, please use the drop down menu below: