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
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. Once that new limit is set, by design, the Treasury department will be legally prohibited from incurring any additional debt. Today,
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. Once that new limit is set, by design, the Treasury department will be legally prohibited from incurring any additional debt. Today,
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. Once that new limit is set, by design, the Treasury department will be legally prohibited from
A few weeks ago, Blue Rose and its sister company, HedgeStar, hosted a webinar relating to the phase-out of the LIBOR Index and what it means for participants in the municipal market. The webinar was well attended by approximately 200 registered participants and concluded with many well-thought questions by those
As the market anticipated, the British Financial Conduct Authority formally announced this morning that all LIBOR tenors in multiple currencies will be discontinued or become non-representative. As a result, under current ISDA definitions, fallback spreads have been calculated and set according to previously described methodologies. Although known with certainty as
In the past, Blue Rose has written about the use of Guaranteed Investment Contracts (“GICs”) and compared them with Flexible Repurchase Agreements (“Repo”). While the structural risks that we described then remain unchanged, recent market developments have begun to close the gap in yield between these two investment products, making
As regular readers of Basis Points are aware, the London Interbank Offering Rate (LIBOR) is expected to be phased out and replaced with the Secured Overnight Financing Rate (SOFR). While there are many fundamental differences between these indices which we have previously discussed, a recent development in this process is
Many higher education institutions and other borrowers in the municipal market are enticed by the low interest rates that are being reported in the press. When they speak with their banks, however, they find that the overall rates that could be achievable from issuing bonds in the current market are
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. Our clients and other issuers and borrowers have been refinancing and restructuring debt transactions to delay near-term debt
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Blue Rose Capital Advisors is an independent financial advisory firm that does not engage in underwriting activities. We are registered with the Securities and Exchange Commission (SEC) and Municipal Securities Rulemaking Board (MSRB) as a Municipal Advisor. Because we have not engaged in underwriting activities in our history, we generally qualify as an Independent Registered Municipal Advisor (IRMA).
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