Blue Rose Advisors Blog

Given the focus on recent  activity of the Federal Reserve (Fed) and expectations of one  more Fed rate cuts over the next few months, many of our clients have asked us what that might mean for the interest rates that they might earn on their bond proceeds.  Accordingly, we reviewed the behavior of the Treasury market over the past approximately 20 years to see if we could identify quantifiable patterns and relationships between Federal Reserve activity and US Treasury securities. 

Prior to rejoining Blue Rose last month, I had the opportunity to sit on one of the Street’s reinvestment desks, where I submitted bids as a principal for many of the same products on which Blue Rose currently advises its clients.  Below are a few of the lessons learned during this time period and how your Blue Rose advisor can help you optimize your returns and avoid unnecessary pitfalls.

The recent closure of the SLGS window combined with the extremely low interest rates on the front end of the yield curve has created a situation for small issuers in which it may be more cost effective, after fees, to cash fund an escrow rather than purchase a portfolio of open market Treasury securities

The debt ceiling for the United States is currently suspended until July 31 and at that time, it will be set to the amount of debt on that day

As we’ve written previously, the debt ceiling for the United States is currently suspended until July 31, 2021, and at that time, it will be set to the amount of debt on that day

During the webinar, we discussed several legislative initiatives intended to cover legacy financial instruments that do not include fallback language and are not subject to the ISDA 2020 LIBOR Fallbacks Protocols

In the past, Blue Rose has written about the use of Guaranteed Investment Contracts (“GICs”) and compared them with Flexible Repurchase Agreements (“Repo”)