Monday, March 8, 2021
Hawai'i Free Press

Current Articles | Archives

Tuesday, March 5, 2013
State Sells Holdings in Student Loan Auction Rate Securities
By News Release @ 5:47 AM :: 3876 Views :: Hawaii State Government

State Sells Holdings in Student Loan Auction Rate Securities

News Release from Office of the Governor Mar 4, 2013

HONOLULU – Gov. Neil Abercrombie today announced that the State of Hawaii and Citigroup Global Capital Markets, Inc. (CGMI) agreed to have CGMI purchase all of the state’s approximately $231 million remaining balance of the Student Loan Auction Rate Securities (Securities) at full face value.

The state purchased the Securities from CGMI back in February 2008. The market for purchasing and selling these Securities subsequently collapsed as a result of the global financial crisis, thereby limiting the state’s ability to sell the Securities at full face value.

Fortunately, the state sufficiently adjusted its investment portfolio and avoided having to sell the Securities for cash flow purposes during this period. In November 2010, the state and CGMI entered into a settlement agreement that required CGMI to purchase all outstanding amounts held by the state on June 2015. At that time, the state held approximately $869 million of these Securities. Since then, the Abercrombie Administration and CGMI have been actively reducing portions of the holding, ensuring that no loss of principal occurs. This balance represents the last holdings of the Securities as well as the largest portion to be settled.

“By working with CGMI, the State of Hawaii was able to sell, without incurring any loss, all of the Securities in an accelerated manner ahead of the originally agreed upon June 2015 date,” said Gov. Abercrombie.

When the state purchased the Securities, they were rated “AAA,” which is the highest investment rating. While the state held the Securities, the state received all of the principal and interest payments due on the Securities.

“Our collaborative efforts with CGMI resulted in the state resolving this issue much earlier than provided in the settlement agreement,” said Finance Director Kalbert Young. “While this does not result in any additional new money to the state, it does allow us to strategically invest these funds to meet future obligations.”

Public Finance Managing Director and Co-Head Frank Chin said: “Citigroup is pleased to have worked closely with the Abercrombie Administration in the removal of all the auction rate securities from the state’s portfolio well ahead of the agreement schedule. We are proud of our longstanding relationship with, and commitment to, the state and are pleased to see this issue resolved.”

# # #

Related: UH Manoa activist sold Hawaii controversial Student Loan Bonds

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

ALEC

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Life Alliance

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT