As Rates Continue to Fall, Taxable Advance Refundings Emerge as Potential Savings Opportunities
With the passage of tax reform in late 2017, refinancing opportunities for municipal borrowers took a significant hit due to the elimination of tax-exempt advance refundings. Taxable advance refundings, while still a nominal option available to borrowers, have generally not generated sufficient economic benefit to be utilized by most of
FY2018 Rating Medians are Out: Credit Analysts Report Similar Trends Within Higher Education
By: Adrienne Booker Growing Credit Gap Most of the S&P, Moody’s, and Fitch-rated colleges and universities that are included in the FY2018 median reports fall within the ‘AA’ and ‘A’ rated categories. While each rating agency provides independent and relatively distinct reporting and commentary about their median results, the three
Blue Rose’s Brandon Lippold, promoted to Associate
Blue Rose Capital Advisors is pleased to announce the promotion of Brandon Lippold to Associate. Brandon’s commitment to serving our clients is incredible and we commend his efforts. Brandon Lippold joined Blue Rose in 2018, providing modeling, analytics, market data and research in support of the delivery of capital planning, debt and
Blue Rose’s Georgina Walleshauser promoted to Analyst
Georgina Walleshauser joined Blue Rose in April 2017. As an Analyst, she is responsible for providing analytical, research, and transactional support to senior managers serving higher education, non-profit, and government clients with debt advisory, derivatives advisory, and reinvestment services. She also prepares debt capacity modeling, credit analysis, and market analysis
June 2019 Municipal Market Update
The objective of this update is to provide insight into key municipal market developments that have occurred since the start of 2019. Most of these occurrences revolve around yield curves; whether it’s their flattening, inversion, shift, changing expectations, or impending replacement. Overall, the municipal market has had a strong start
June 2019 Capitalizing on a Flat Yield Curve: Floating Rate Guaranteed Investment Contracts
The shape of the yield curve in the current market continues to remain relatively flat, with minimal differences between short-term rates and long-term rates compared to historical levels. Additionally, interest rates have been declining to significantly low levels. At the end of June, the 10-year swap rate was the lowest
Market Update on Public Private Partnerships in Higher Education
Public-Private Partnerships (P3s) in higher education continue to grow across several dimensions, including services/assets where the P3 approach is applied and evolution of different payment models. Beyond Undergraduate Student Housing Interest in housing P3s has expanded beyond traditional housing for undergraduates. The number of P3 deals for undergraduate student
Negative Arbitrage in Project Funds
We recently completed a reinvest transaction for a Blue Rose client who had a rather short-dated project fund, with a final draw date approximately seven months after the settlement of the bonds. Given the current inversion of the yield curve at the very front end, we were delighted that we
Recapturing Inefficiencies in Escrows
Every month, U.S. Treasury securities are auctioned to determine their appropriate yield. New shorter-term Treasuries with maturity dates of 6 years or less are auctioned monthly or bi-monthly, so that there will be a Treasury security maturing at least monthly for those shorter tenors. Longer-term Treasuries with maturity dates of 7
Changes to Rule 15c2-12 and Their Effect on Issuers’ Continuing Disclosure Requirements
Last year, the SEC announced its plans to amend Rule 15c2-12. This proposed amendment recently took effect at the end of February 2019. Rule 15c2-12 requires underwriters of municipal securities to determine that issuers and obligated persons have entered into an agreement to provide continuing disclosure information to the MSRB
An Update on the Transition from LIBOR to SOFR
Last June, Blue Rose published an article discussing the troubles facing LIBOR and introducing the rate currently pegged to replace it – the Secured Overnight Financing Rate (SOFR). It’s been almost 9 months since that original article was published, and in that time the transition from LIBOR to SOFR has seen a
SLGS Window to Close in March
The debt ceiling for the United States is currently suspended until March 1, 2019 and at that time, it will be set to the amount of debt on that day. Once that new limit is set, by design, the Treasury department will be legally prohibited from incurring any additional debt.
The Shape of the Current Yield Curve – Historical Context and Potential Market Opportunities
In recent months, the growing flatness of the yield curve has been a consistently discussed topic in the market. Essentially, while the “normal” shape of the yield curve has historically been positively/upward sloping (with short-term rates lower than long-term rates), the magnitude of this slope has been shrinking significantly. At
30-year Industry Veteran Sam Gruer Joins Blue Rose Capital Advisors
Gruer Will Enhance Service Offerings and Develop Firm’s East Coast Presence MINNEAPOLIS, MN – July 10, 2017 – Blue Rose Capital Advisors, a Municipal Advisor for higher education and non-profit institutions, is pleased to announce that Sam Gruer has joined the firm as Managing Director after Blue Rose acquired the
Justin Krieg Joins Blue Rose Affiliate MuniPriceTracker as Vice President
Krieg Will Provide Litigation Support and Expand MuniPriceTracker Product Offerings MINNEAPOLIS, MN – June 4, 2018 – Blue Rose Capital Advisors, a Municipal Advisor for higher education and non-profit institutions, is pleased to announce that Justin Krieg has joined the Minneapolis office as Vice President at MuniPriceTracker (“MPT”).
Blue Rose Capital Advisors and John S. Vincent & Company Merge
Blue Rose Capital Advisors and John S. Vincent & Company Merge to Create a Stronger Financial Advisory Firm for Higher Education Institutions MINNEAPOLIS, MN – January 15, 2015 – Blue Rose Capital Advisors and John S. Vincent & Company have merged effective December 30, 2014, creating a stronger financial
The SLGS Window is Closed…Now What?
With the SLGS window currently closed and expected to remain so for several more months, issuers of current refunding transactions should consider using open market securities escrows. In recent years many issuers correctly believed that for shorter dated escrows it was often more cost effective to gross fund the escrow
Basis Points- SLGS Window Reopened
The Shield: 2023 First Quarter Market Update
Basis Points – Special Announcement SLGS Window Closed This Week
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