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Wall Street wins as Pennsylvania public schools bet against interest rates

School districts that bought interest-rate swaps as a hedge against rising interest rates last year have found they may have to pay the banks millions.

To protect construction costs for Caley Elementary (pictured) and other school projects from rising with interest rates, school officials bought interest-rate swaps in 2018. But interest rates fell instead of rising, and now Upper Merion Area School District is one of several that face millions in financial costs.
To protect construction costs for Caley Elementary (pictured) and other school projects from rising with interest rates, school officials bought interest-rate swaps in 2018. But interest rates fell instead of rising, and now Upper Merion Area School District is one of several that face millions in financial costs.Read moreUpper Merion Area School District