"As of December 31st our cash and short term investments were $175.6 million which includes $130 million of investments in auction rate securities. These are high grade AAA rated student loan federal government backed auction rate securities issued by student loan funding organizations which loans are 97% guaranteed under FELP, the Federal Family Education Loan Program. Historically, these securitizes have been considered short term investments and were highly liquid as the interest rate reset every 28 days and allowed investors to either roll over their holdings or sell them at par. However as has been reported in the press earlier this month the auctions for auction rate securities backed by student loans failed. The auction rate securities continue to pay interest at LIBRO plus 1.5% and there’s been no change in the rating of these securities."
The auction market for high interest gov't backed securities will be back shortly... that's why their has been NO CHANGE to their triple AAA rating.