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
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
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
There continues to be a disparity in the current market between pre-refunded municipal bonds and Treasury securities
It is typical for issuers with an upcoming refunding transaction to engage an escrow bidding agent
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
