Finance
Florida Seizes on Low Rates for Hurricane Fund as Storms Start
- Reinsurance fund selling $2.25 billion of taxable bonds
- ‘This is an extraordinary opportunity,’ state official says
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With hurricane season barreling down on Florida, the state is seizing on low interest rates to borrow $2.25 billion for its catastrophe insurance fund.
The State Board of Administration Finance Corp. is joining state and local governments that have rushed to sell bonds since yields tumbled this year to the lowest in decades. While rates have edged up over the past three weeks, benchmark 10-year debt is still yielding only about 0.8%, matching the lows seen before the pandemic upended financial markets in March.