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Hedge Funds Can't Chase Risk in Hometown as Greenwich Sells Debt

  • Connecticut's wealthy enclave sets limits on borrowing plans
  • Town's deal priced at lower yields than benchmark AAA debt
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Greenwich, Connecticut, may be home to hedge-fund managers who chase risk in search of billion-dollar payoffs, but the town’s annual offering to the municipal-debt market is as safe as they come: AAA rated bonds, all backed by property taxes.

The community of 62,000, with top grades from the three largest credit-rating companies, issued $60 million of tax-free notes and $50 million of general obligations Thursday, data compiled by Bloomberg show. Five-year securities priced to yield 1.02 percent, below the 1.13 percent yield on an index of AAA munis. The bulk of proceeds will fund an auditorium at Greenwich High School and a firehouse, Peter Mynarski, Greenwich’s comptroller, said in an interview.