With the U.S. fiscal year ending on September 30th when government funding is set to expire, there has been increased pressure to extend funding. On Tuesday, the House of Representatives passed a bill in hopes to prevent a government shutdown resulting from this upcoming deadline and allow for government funding

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,

In the current market, debt service reserve funds create negative arbitrage for issuers due to the difference in available investment rates for the reserve fund and the borrowing rates of the bond transaction. On the other hand, a debt service reserve fund may benefit the issuer by creating more investor

Do you want to learn more about refunding escrows, especially with a SLGS window closure expected this summer? Blue Rose has experience in structuring, restructuring, and procuring open market escrow portfolios.   Talk to a Blue Rose advisor today! https://youtu.be/SebynmnFCuo Contact Blue Rose: (952) 746-6050 [email protected]   Media Contacts: Megan

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

In past newsletters, we’ve often discussed the impact of an inverted yield curve environment on refunding escrows. Specifically, we’ve explained in detail the idiosyncrasies caused by an inverted yield curve that led to State and Local Government Series (SLGS) escrows outperforming open market securities (OMS) escrows (Comparing SLGS and OMS

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

Prior to the financial crisis, long-term interest rates were significantly higher than where they are currently.  The graph below shows the decline of the 20-year LIBOR swap rate (as a proxy for long-term interest rates) since January 2007. A sharp decline in rates occurred early this year, creating all-time low rates.