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. Below are a few notable updates:   The market turmoil experienced over the last 6 months related to the COVID-19 pandemic has

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

There continues to be a disparity in the current market between pre-refunded municipal bonds and Treasury securities. Most escrows that were established at some point over the last several years contain either State and Local Government Securities (SLGS) or Open Market Securities (OMS) that have appreciated in value substantially due to

It is typical for issuers with an upcoming refunding transaction to engage an escrow bidding agent. The role of a bidding agent usually consists of soliciting bids for open market securities (“OMS”) with the award being contingent on these securities providing a benefit compared to State and Local Government Securities (“SLGS”)

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

As many of you are aware, interest rates on US Treasury securities have recently fallen significantly. Interestingly, at the same time, interest rates on municipal securities, including pre-refunded bonds (which are typically backed by US Treasuries), have risen substantially as shown in the chart below. This has created a unique

Many issuers with outstanding variable rate demand bonds (“VRDBs”) have been closely tracking the SIFMA index in recent weeks, due to increased market volatility. On March 18th, the weekly SIFMA index reset more than 390 basis points higher than the previous week’s reset, and then decreased by 49, 288, and

At Blue Rose, we’re often asked about the usage of Guaranteed Investment Contracts (“GICs”) and the trade-off between risk and return. Utilizing 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

Blue Rose recently has seen many issuers contemplate whether to reinvest their bond proceeds in a money-market fund or a laddered portfolio. A money-market fund offers a short-term variable rate that, in the current inverted yield curve environment, is often higher than the long-term fixed rate offered by a laddered

Generally, in a positively sloped yield curve environment, issuers benefit from investing the bond proceeds in their project funds by purchasing investments with a longer duration that offer a higher yield when compared with money market funds or other short duration instruments. In this manner, project funds are typically invested