Both taxable and tax-exempt rates were volatile throughout the first quarter of 2026, as geopolitical developments disrupted what had been a constructive start to the year. Municipal bond returns were comfortably in the green through January and February, fund flows were trending positively, and market participants were feeling cautiously optimistic about a resumption of Fed easing.
Tax-exempt entities, including municipalities, universities, healthcare systems, and nonprofits, often carry outstanding debt through bonds issued in the public capital markets. As market conditions evolve and interest rates fluctuate, opportunities emerge to optimize debt structures and reduce long-term borrowing costs. One increasingly valuable strategy is the tax-exempt bond tender, which allows borrowers to repurchase their outstanding bonds from the secondary market and refinance that purchase through the issuance of new tax-exempt debt.
Public-Private Partnerships (“P3s”) have become a commonly considered method of funding, developing, and often operating much-needed capital projects in higher education. The principal motivations for higher education institutions to look to private sector partners are to share risks, provide financing, and deliver projects more efficiently and timely. Institutions considering a P3 path should carefully consider the trade-offs to determine whether a P3 truly aligns with their strategic objectives and if it is the most appropriate method of financing a particular project in the short- and long run.
Market participants have had much to ponder as they navigate through this period – how many rate cuts (if any) are coming this year? How will government policy, particularly tax reform, impact markets?
In the ever-evolving landscape of higher education, institutions face mounting pressure to maintain and modernize their campuses with limited financial resources. From addressing aging infrastructure to expanding facilities for future growth, campus improvement is an essential but costly priority
The major credit rating agencies shared their 2025 outlook reports for higher education in December of 2024. Moody’s Investor Service assigned a “Stable” outlook for the sector, highlighting a steady financial environment for the sector due, in part, to waning pressure from inflation and modest growth for revenue streams
The beginning of the new year marks a new start for many of us. New year’s resolutions, new goals and aspirations, perhaps even a commitment to stay the course on a personal or professional mission. It is the way of the world to set new milestones for ourselves as the calendar turns over from one year to the next. For the Blue Rose team, our commitment is unwavering to remain steady, trusted advisors who provide expert advice amid upside-down yield curves, changing tax codes, interest rate volatility and, possibly, more market surprises than we may wish to think about in 2025.
Higher education has experienced a few years of tumult and recovery since the COVID pandemic. While some institutions are catching their breath, others are struggling to survive. Given the gathering clouds around enrollment trends from this year and well into the future, few can afford themselves the luxury of complacency. We explore recent developments
Higher Education Rating Agency Medians – Some Stabilization in FY 2023, but Enrollment and Operational Challenges Remain
In our previous market update published in mid-May, we focused on interest rate volatility and signaling from the Fed on its rate outlook for the remainder of the year. While rate volatility has somewhat calmed, the interest rate environment is still elevated relative to the last several years
