WEBINAR: How Recent Changes in the Municipal Bond Landscape May Impact your Capital Projects
Scott Crist, executive vice president and manager of the Investment Banking Division’s Public Finance Group, recently offered an in-depth review of the municipal bond landscape—with a specific focus on factors likely to affect capital-project planning for higher education, healthcare and municipalities. We invite you to view the video recording of the webinar, which offers a deep dive into how the 2017 tax reform affected the municipal bond landscape and how that landscape is shifting again now that the U.S. election is over.
The webinar covers these and other critical areas for municipalities and tax-exempt institutions to consider as they approach funding their next capital projects:
Alternative refunding structures
- Taxable advance refundings
- Cinderella bonds
- Tax-exempt forward delivery bonds
- Cash defeasance and new money issuance
- Interest rate swaps
Changing investor preferences
- Declining bank investments in tax-exempt bonds
- Increasing mutual fund investments
- Rising importance of retail investors
Increasing use of private placements
- How private placements differ from public sales
- Private placements under 10% of the total market—but tripled share over 10 years
- Institutional investors and banks both see benefit in private placements
- Issuers maybe benefit from customization, avoidance of market volatility, fewer regulatory demands and potentially lower costs
On the horizon
- Infrastructure bonds might be introduced that allow municipalities to offset interest payments with government subsidies
- Advance refundings might be reinstated
- The Bank Qualified Limit might be permanently raised and indexed to a cost-of-living measure
- The volume limit on Private Activity bonds might be substantially increased
- Changes in tax laws could influence the demand for tax-exempt income
To complement the webinar, we also invite you to read recently articles from Scott Crist below:
- Alternatives to advance refundings post tax cuts and jobs act of 2017
- Changing investor preferences for municipal bonds
- Increasing use of private placements in the issuance of bonds
- Supply and demand dynamics shaping the market
See the link to the webinar here.
The Investment Banking Division’s Public Finance Group is committed to helping healthcare institutions fulfill their quality-of-life and growth aspirations. Visit umb.com to learn more about how we can support your organization, or contact us to be connected with an investment banking team member.
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