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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