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
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
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
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
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 current market, the yield curve is no longer inverted and in fact is steeper than it has been during the past four years
In the past, Blue Rose has written about the use of Guaranteed Investment Contracts (“GICs”) and compared them with Flexible Repurchase Agreements (“Repo”)
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
