SANDAG Bet Against Big Banks — and Taxpayers Are on the Hook for Millions
Interest-rate swaps cost public agencies millions of dollars. Now they’ve largely disappeared in the public sector.
Many agencies have paid money to get out of swaps deals. SANDAG, however, has kept the bulk of its swaps – with their outsized monthly payments to banks on top of debt payments to actual bondholders – even as money runs dry for new projects.