The purpose of the Interest Rate Risk Management Policy is to outline a framework for the utilization of interest rate swaps, and other financial products (Caps, Collars, etc.) available in the marketplace, as they relate to the City of Palm Bay’s Debt Management Policy and programs.
Derivative financial products will not be employed as investment instruments or for the purpose of speculation. Any swap or derivative product transaction should not impair the outstanding bond rating of the City or negatively affect the amount of credit enhancement capacity available to the City.
The City will be open to innovative ideas for any proposed transaction as well as variations from the following guidelines provided that such variation shall be fully explored with the City’s advisors and explained to the Council Members of the City.
Click here to view Swap Policy