Blue Rose Advisors Blog

Gaining Liquidity by Liquidating Long-Dated Investment Contracts

Gaining Liquidity by Liquidating Long-Dated Investment Contracts

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

Basis Points: LIBOR / SOFR Update

Basis Points: LIBOR / SOFR Update

Since Blue Rose’s last update on the transition from LIBOR to SOFR the ARRC continues to push forward in meeting milestones laid out in its paced transition plan

Hedging Treasuries in an Uncertain Market

Hedging Treasuries in an Uncertain Market

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

budgetary relief with interest rate swaps

Budgetary Relief with Interest Rate Swaps

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

Restructuring Escrows with Pre-Refunded Municipal Securities

Restructuring Escrows with Pre-Refunded Municipal Securities

The Treasury securities held in escrows that were bid in recent years have likely appreciated substantially in value due changes in interest rates, and we are seeing that dealers are willing and often eager to buy back these securities

GICs: What’s the Trade-off?

GICs: What’s the Trade-off?

tilizing a GIC as opposed to a Repurchase Agreement (“Repo”) for the reinvestment of bond proceeds can result in a higher yield of approximately 25 basis points, depending on the balance invested, the time period for which the balance is invested, and the type of collateral that is eligible under a Repo agreement