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
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
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
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
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
