Hazell v. Hammersmith and Fulham Borough Council, a 1991 decision by the House of Lords, found that swaps in the United Kingdom were ultra vires—in other words, that the localities involved did not have the legal power to enter into swaps transactions with banks. In light of the decision, most U.S. bankers have ascertained that issuer clients did have the authority to engage in interest-rate swaps.
Heartland fund implosion
On September 28, 2000, Milwaukee-based Heartland Advisors, Inc. reduced the net asset value of its High-Yield Municipal Bond Fund by 8.2 percent, to $8.03 from $8.75 per share. It also reduced the net asset value (NAV) on its High Yield Short Duration Muni Fund by 2.1 percent, to $8.91 from $9.10 per share. The ...