SFWeekly says HMB bonds would be ‘Vampire Bonds’

By on Mon, May 11, 2009

The SF Weekly says that if Half Moon Bay does issue bonds to pay off Chop Keenan, they might be pioneering a new style of investing.

Into the the promising field of anti-social investment offerings steps the city of Half Moon Bay, a municipality 30 miles south of here. The city’s manager recently told the publication Bond Buyer that it has obtained approval to sell $18 million worth of municipal debt—which we term vampire bonds—designed to pay off an apparently bloodsucking Woodside land speculator who has crippled a small town by simply purchasing land nearby, then going to court. ...

For anti-social investors, such an issue would create a golden opportunity—by allowing them to send money in the direction of a speculator whose machinations have threatened to bleed a small town to death.