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UMMS defends use of interest rate swaps
UMMS defends use of interest rate swaps

The University of Maryland Medical System has set aside tens of millions of dollars because of complex financial transactions related to interest rates that have not paid off — yet. The medical system cannot use those funds — $93 million at the end of March — even as it wrestles with financial pressures that have led to layoffs. Several years ago, UMMS entered into what are known as interest rate swaps when the financing tool was popular and widely used by hospitals, municipalities and businesses looking to protect themselves against the risk of rising interest rates. In an interest rate swap, an entity such as a hospital executes a contract with a bank to transfer...

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