Under Chicago’s previous mayor, the city made a series of bond deals known as “swaps”. The idea behind the transaction is that a unit of government is “swapping” a higher variable rate for a lower fixed rate. Sounds like a great deal for the city. But there’s always a catch. In this case, the deal could be terminated if Chicago’s rating is lowered again, and taxpayers could be on the hook for a lot of money. Attorney Larry White does public finance for Chapman and Cutler and joins us to explain how you might be affected. Photo: Flickr/Philip Taylor PT