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 the perspective of the individual or institution involved
A little over a year ago, the transition from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) occurred. This transition had been in the works for several years and officially concluded in June of 2023. Below, we summarize some important milestones that have transpired since the transition
Blue Rose Capital Advisors Erik Kelly, President, and Brandon Lippold, Vice President, shared industry insights and financial strategies to address unique market activity during their presentation at the Wisconsin Health & Education Facilities Authority’s (WHEFA) Lunch & Learn Market Update Webinar on March 26th, 2024
LIBOR cessation occurred as scheduled on June 30th of this year and most variable instruments that historically referenced LIBOR should now reference a different index. Depending on your last reset period, your debt instruments could still be utilizing a LIBOR rate for your current interest accrual period, however, with interest accrual periods thereafter referencing a different rate, likely some form of SOFR
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
2021 saw a continued demand for – and high issuance of – municipal bonds following record performance in 2020, though higher education issuance was down compared to the prior year, following a decline in taxable issuances
In the last year and a half, the strong stock market performance has been a boon for higher education institutions despite the turbulent operating environment. For example, the S&P 500 is up 35% from its pre-pandemic high
Since we published our 2020 Mid-Year Market Update last June, the financial markets have calmed down from the historic turbulence experienced as a result of the COVID-19 pandemic
Since Blue Rose’s last update on the transition from LIBOR to SOFR the ARRC continues to push forward in meeting milestones laid out in its paced transition plan
Effective July 17, 2020, through September 30, 2020, Nonprofit entities can obtain federal loan dollars through two different Main Street Lending Program facilities (NONLF [1], & NOELF [2])
