Blue Rose Advisors Blog
The Shield: March 2023 LIBOR Update
LIBOR cessation is now just three months away (June 30, 2023), and most of the transition process appears to be going to plan. SOFR continues to be the primary index utilized for the transition of variable rate loans, especially in cases where a synthetic fixed rate structure exists
The Shield – ESG-Labeled Bonds: Can They Deliver “Greenium?”
With the tremendous buzz around the political, social, and economic factors at play around ESG (“Environmental, Social, and Governance”) bonds and their evolving status, it can be daunting for muni bond issuers that may want to enter this niche of the capital markets. The municipal bond market is, in fact, undergoing a period of change on how it both grapples with and takes advantage of ESGs
Basis Points: Benefits of a GIC in the Current Market
At Blue Rose, we’re seeing many issuers are evaluating the trade-off between risk and return associated with Guaranteed Investment Contracts (“GICs”) for the investment of bond proceeds. While both a repurchase agreement (“repo”) and GIC can offer the certainty of a fixed rate of return, capital preservation, and intended liquidity, a GIC can result in a much higher yield
Blue Rose’s Georgina Walleshauser promoted to Vice President
Georgina Walleshauser is promoted to Vice President at Blue Rose Capital Advisors
Blue Rose’s Brandon Lippold promoted to Vice President
Brandon Lippold is promoted to Vice President at Blue Rose Capital Advisors
Blue Rose’s Maxwell Wilkinson promoted to Vice President
Mr. Wilkinson joined Blue Rose Capital Advisors in 2016. In his role of Assistant Vice President, he was tasked with providing transaction execution leadership, ensuring that our clients’ debt and debt-related transactions progressed smoothly and efficiently
Basis Points: Special Announcement – SLGS Window to Remain Open
As expected, the U.S. government’s debt limit was reached today. Treasury Secretary Janet Yellen identified this situation in a letter to Congress last week
The Shield – 2022 Municipal Market in Review
The municipal market landscape in 2022 was a meaningful departure from what we experienced in 2021 and 2020, which were banner years for issuance of municipal debt
Basis Points – A Year in Review for Reinvestment Rates
In 2022, short-term interest rates rose significantly. This was an obvious trend that captured many headlines throughout the year
Remembering Emily Stolp
It is with great sadness that we share the news that our friend and colleague Emily Stolp has passed away
Blue Rose Capital Advisors – Holiday Event 2022
To celebrate our year together as a company, Blue Rose Capital Advisors, along with our sister company HedgeStar, spent some quality time with each other learning the sport of curling and having a fun gift exchange
Thankfulness for Our Team, Our Mission and A Continuing “Service” Tradition
This year has marked a return to “normal” Thanksgiving activities for my family and me, most notably the resumption of large family gatherings that were a mainstay of our pre-pandemic life
Blue Rose Capital Advisors at a Glance!
Blue Rose Capital Advisors is a full-service independent financial advisory firm that serves clients of all sizes and sectors, with a specialization in higher education institutions. Our services include debt advisory, derivatives advisory, reinvestment advisory, P3 advisory & additional advisory services
Basis Points – Strategizing with Reinvestment for Future Capital Needs
Not surprisingly, the FOMC meeting last week resulted in another 75-basis point rate hike to the Fed Funds rate. Based on the Bloomberg Weighted Average forecast (shown in the graph below), the current market sentiment is that rates will continue to increase through the beginning of next year
The Shield – Keeping Pace with Moody’s New ESG Methodology
ESG, or “Environmental, Social, and Governance” has been a hot topic of conversation across the financial world for years, with its weight and influence on investing decisions and credit profiles continuing to grow and expand
Basis Points – Interest Rates Continue to Increase
This month the Federal Reserve raised interest rates again by 0.75%, and we continue to see significant increases in treasury rates, particularly on the front end of the yield curve. As a result, the treasury yield curve is now significantly inverted, as showcased in the chart below
Blue Rose Capital Advisors Annual Meeting 2022
Every year the Blue Rose Capital Advisors team gathers with our affiliate company, HedgeStar, for an in-person meeting to celebrate the year we’ve had as a company
FREE Webinar: LIBOR Transition – Final Countdown
As LIBOR cessation approaches the market is now seeing a significant uptick in legacy LIBOR instruments transitioning to reference alternative indices. This presentation aims to simplify and organize the large amount of information that has been released to the market over the last few years
The Shield: Mergers, Acquisitions, and Hard Choices
Colleges and universities across the country are facing unprecedented pressures. Inflation and rising costs are the most recent factors that drive finance and business officers to pull their hair
The Shield: Rising Rates and the Inverted Yield Curve
Out of control inflation, war, geopolitical tensions, and China’s recent mortgage defaults and boycott are some of the issues that have led to market volatility this year. In a response to inflation running at its highest levels since the early 1980s, the Fed has delivered some of the biggest interest rate hikes in decades, with 75 bp increases in both June and July
Basis Points: Increases in Short-Term Interest Rates
The Federal Reserve raised interest rates again last week by 0.75%. Movements in the fed funds rate are closely related to short-term treasury rate movements. Historically and as shown in the graph below, the timing of increases to treasury interest rates has occurred leading up to (rather than following) the recent FOMC meetings when the fed fund rate hikes occur
Blue Rose’s John Elliott promoted to Assistant Vice President and Chief Compliance Officer
John Elliott is promoted to Assistant Vice President and Chief Compliance Officer at Blue Rose Capital Advisors. Mr. Elliott joined Blue Rose’s California office as an Associate in 2021
Considerations for Reserve Funds in the Current Market
The current market is allowing borrowers to realize significant interest earnings through the reinvestment of their debt service reserve funds. Because of the relatively flat yield curve environment the issue of negative arbitrage is diminishing and, in some cases, non-existent
Basis Points – Advantages to Reinvestment Structures in the Current Market
Interest rates have risen dramatically over the last six months, especially at the short-end of the yield curve. Even though we’ve seen slight tapering in rates over the past several weeks, the yield curve continues to provide significant reinvestment opportunities for issuers
Moody’s Private Higher Education Medians Reveal Mixed Trends for Private Universities in FY 2021
In fiscal 2021, private universities saw major positive developments that buoyed their credit positions in the wake of the COVID-19 pandemic. In particular, strong investment returns across the many asset classes provided for significant growth in cash and investments for most universities, and pandemic-related government aid provided support for operations
Basis Points: Reinvest Market Update
Benefits of Engaging a Municipal Advisor When Reinvesting Bond Proceeds
The Shield – July Market Update
The Shield – Transitioning From LIBOR: A Year With SOFR
Blue Rose Capital Advisors is Presenting at the NACUBO Annual Meeting
Basis Points: June Market Update
The Shield – May Market Update
Basis Points: Positive Arbitrage Persists in the Market, Increasing in Certain Circumstances
The Shield – Market and Company Update
