What are Private Activity Bonds? Private Activity Bonds (“PABs”) are a specific type of municipal bond (“muni bonds”) where the ultimate borrower is often a nonprofit private entity. PABs allow these nonprofit organizations to issue tax-exempt bonds through conduit issuing authorities, unlike state and local governments that issue tax-exempt bonds

Updated: May 15   Interest Rate Swaps An interest rate swap is a derivative contract between two parties in which one party pays a fixed rate and the other pays a variable rate with the goal of managing exposure to market fluctuations. The perception of interest rate swaps varies depending on

Updated: May 15 Understanding the Series 50 and Series 54 Examinations Borrowers will often see mention of the Series 50 and Series 54 examinations. These qualifying exams are important for ensuring borrowers are getting top-tier advice from independent, qualified municipal advisors. To become a “Municipal Advisor Representative” per Rule G-3 of

Updated: May 15   The Impact of Interest Rate Changes on Bond Reinvestment Decisions It is important to consider the current interest rate environment when deciding how to reinvest tax-exempt bond proceeds. In particular, the yield curve can offer signals for how to best optimize a reinvestment structure. It is also

Updated: May 15   Credit Ratings in Bond Transactions As institutions advance bond transactions to the market, a common step for many borrowers is to obtain a long-term bond rating for the issue. This rating is a signal to investors of an institution’s creditworthiness, i.e., its ability to repay its debt

Bond Pricing in Capital Markets Though there are many steps involved in successfully completing a financing in the capital markets, the pricing of the bonds themselves is one of the most important. Given its vital economic implications, having a municipal advisor (“MA”) providing advice, support, and advocacy throughout the process

What Are Green Bonds? Understanding ESG-Labeled Bonds Green labeled bonds belong to a family of designations affixed to bonds issued under the “ESG” labels (“Environmental”, “Social”, and “Governance” bonds). There exist readily available standards to which borrowers can use for labelling their green bonds, such as the International Capital Market

Updated: May 15   Understanding A Public-Private Partnership A Public-Private Partnership (P3) is an agreement between a government agency and a private firm to provide services that would traditionally be handled by the public sector, like designing, building, financing, operating, and maintaining a facility or provide a service.   Blue Rose

What Are Tax-Exempt Bonds? Let’s Get Started! To start, let’s begin with the basics of what exactly are tax-exempt bonds (here, used interchangeably with “municipal securities” or “muni bonds”). Tax-exempt bonds are debt securities issued by or through states, municipalities, and other government entities to finance public projects such as