The authors study the composition of the Orange County Investment Pool on December 1, 1994. They find that the pool was neither illiquid nor insolvent and that its financial condition did not mandate bankruptcy. If the pool had not been liquidated but had instead been allowed to follow its hold-to-maturity strategy, Orange County would not only have avoided the losses it realized and reported but also would have generated substantial cash inflows during 1995.
M Miller 是诺贝尔经济奖得主，金融学MM theorem 理论创始人之一
Merton H. Miller is at the Graduate School of Business, the University of Chicago.
David J. Ross is at Lexecon Inc.
