Blue Rose Advisors Blog
June 2020 Municipal Market Update
Blue Rose has begun publishing weekly “Special Editions” of The Shield to address key municipal market topics as they develop
Developing Story: Favorable Tax Policy Changes Potentially on the Horizon
Last week, a bill entitled The Moving Forward Act was proposed in the U.S. House of Representatives that addresses many infrastructure needs of our country
Credit Rating Factors in a Post-Pandemic World
In the 90-plus days since COVID-19 interrupted the 2020 Spring term in an historically unprecedented fashion, the credit rating agencies have moved quickly to measure the pandemic’s immediate and prospective impact upon higher education institutions across the country
Debt Restructuring Alternatives – Additional Tools in the Toolbox
It is evident that issuers and borrowers across the public finance sector – from States and State agencies to municipalities, from higher education to healthcare and other non-profit organizations – are working diligently to establish new budgets for the upcoming fiscal year
Budgetary Relief with Interest Rate Swaps
As a result of the economic slowdown caused by the COVID-19 pandemic, many budgets are strained and borrowers continue to look for ways to conserve cash as a way to increase their liquidity
Restructuring Escrows with Pre-Refunded Municipal Securities
The Treasury securities held in escrows that were bid in recent years have likely appreciated substantially in value due changes in interest rates, and we are seeing that dealers are willing and often eager to buy back these securities
Basis Risk Between SIFMA and LIBOR in the Current Market
Many issuers with outstanding variable rate demand bonds (“VRDBs”) have been closely tracking the SIFMA index in recent weeks, due to increased market volatility
The Shield – April Edition
Tax-exempt capital market behaviors consistent with an early April snowstorm
Take Action Now for Money Available Under the CARES Act
Paycheck Protection Program—Available to Institutions With Less Than 500 Employees
Helping Institutions Keep an Eye on the Medium- and Long-Term Implications of the COVID-19
The current COVID-19 health pandemic is creating tremendous concern for the higher education sector: Moody’s has downgraded the sector to a “negative” outlook, S&P has revised their outlook on privatized/P3 higher education housing deals to “negative,” and each day there are articles discussing the near-term impact of the coronavirus
The Shield: A Special Market Update Edition
Interest rates have never been lower
GICs: What’s the Trade-off?
tilizing a GIC as opposed to a Repurchase Agreement (“Repo”) for the reinvestment of bond proceeds can result in a higher yield of approximately 25 basis points, depending on the balance invested, the time period for which the balance is invested, and the type of collateral that is eligible under a Repo agreement
Money Market Funds vs. Laddered Portfolios Part 1: Market Expectations
A money-market fund offers a short-term variable rate that, in the current inverted yield curve environment, is often higher than the long-term fixed rate offered by a laddered portfolio investment
Blue Rose’s Scott Talcott, promoted to Senior Vice President
Mr. Talcott provides financial advisory services to the firm’s clients with respect to the planning and execution of all types of debt, derivative, reinvestment, and P3 transactions
Connecting with Blue Rose Advisors in 2020
At Blue Rose, we welcome the new year as it presents our advisory team and our clients with another opportunity to improve their organizations and overcome various challenges, whether those be in the capital markets or sector specific
Benefiting From A Longer Duration In An Inverted Yield Curve Environment
Generally, in a positively sloped yield curve environment, issuers benefit from investing the bond proceeds in their project funds by purchasing investments with a longer duration that offer a higher yield when compared with money market funds or other short duration instruments
2019 Municipal Market Year in Review
The year began with a significant amount of market uncertainty, with many market participants anticipating impending market-wide turmoil
Your Blue Rose Capital Advisor Update
Blue Rose Capital Advisors is thankful for the new opportunities and progress made during this holiday season
Utilization of a Laddered Portfolio Investment Strategy for Debt Service Reserve Funds
Rather than investing the entire reserve fund in a single longer-term security, clients are choosing to purchase a laddered portfolio of securities, scheduled to mature over several years. As each security matures, it can be rolled over and reinvested at then prevailing interest rates
Comparing SLGS and OMS Escrow Portfolios in the Current Market
By design, the yields on State and Local Government Series (SLGS) securities are slightly lower than the yields on open market securities (OMS)
Being of Service – An Annual & Ongoing Tradition
A goal of this gathering each year is simple – to create an opportunity for our team to fulfill our passion for serving others in a way that is different from our day-to-day advisory work
New Tax Considerations for Taxable Advance Refundings
The National Association of Bond Lawyers (NABL) held a conference this month where a panel entitled “Tax Hot Topics” inspired a discussion on taxable advance refundings
How to Cope with Adverse Swap Values
Rates have fallen and yield curves have flattened (and in some areas inverted) significantly since the start of the year
Taxable Advance Refunding Transactions
Given the elimination of tax-exempt advance refundings as a result of the 2017 tax reform act and the precipitous decline in interest rates over the past few months, many borrowers are finding that a taxable advance refunding achieves their savings goals and may even be preferable by potentially eliminating tax compliance concerns
Total Return Swaps
Total return swaps issued in combination with long term fixed rate notes or 20-year fixed rate debt are a viable alternative for tax-exempt issuers that typically issue Direct Purchase Bonds or Variable Rate Demand Obligations as a source of capital funding
Basis Points- SLGS Window Reopened
The Shield: 2023 First Quarter Market Update
Basis Points – Special Announcement SLGS Window Closed This Week
Our Additional Advisory Services include Investment Consulting Search Services
Wondering how else Blue Rose can assist your organization?
Basis Points – Reinvest Market Update
What can Blue Rose offer when it comes to reinvestment services?
Reinvestment advisory services – How can Blue Rose help?
Derivatives Advisory Services – LIBOR Transition
