While the pension's merger with the state system allows Denver's school system to avoid paying interest on shortfalls, that benefit is temporary.
Many schools, like Bates College, where the comprehensive fee is $55,300, actually incur per-student costs as high as $80,000 and cover the shortfall using interest from their endowments.
Because of the sales shortfall, the interest coverage ratio was temporarily reduced by a quarter point to three times through Oct. 30, 2010.
The telecommunications unit 3 Group posted a loss of HK$20 billion ($2.6 billion) last year, which was a marked improvement from the HK$36.3 billion ($4.6 billion) shortfall before interest and taxes last year.
And there hasn't been a shortfall of interest from foreign investors, particularly from oil giants, which are considering huge investment in a post-sanctions Iran.
This imbalance corresponded to a chronic demand shortfall and tumbling interest rates.
Nobody blinked — not Congress, not the White House, not the investors around the world who keep buying Treasury bonds to finance this year's $1.6 trillion shortfall, at low interest rates.
From the campaign trail in mid-July, Mr. Bennet reiterated his support of the deal, saying that it had achieved the school system's goal of improving its cash flow and merging with Colorado's Public Employees Retirement Associationn, which meant the schools no longer had to pay 8.5 percent interest on its annual pension shortfall.
"Building societies and other mutual lenders will deploy all the tools they have to help anyone who has an interest-only mortgage with a shortfall.
Mr Espiritu had a deft touch in the bond markets: last year, the country's nimble fund-raising efforts allowed it to make good its budget shortfall at impressively low interest rates.
