Port of NY & NJ Muni pays 20%

An interesting article in Mauldin's Outside The Box Newsletter called Tabasco and Variable Rate Munis by David Kotok, describes how the Port of New York and New Jersey paid 20% on an annualized basis on a one week municipal note! It is hard to believe that the capital lending market has become that bad.
The article goes on to state that closed end municipal bond funds will be the next investments to be hit.