Basis Points: Special Announcement - SLGS Window to Remain Open
Minneapolis, MN | January 19, 2023 | Georgina Walleshauser, Vice President
As expected, the U.S. government’s debt limit was reached today. Treasury Secretary Janet Yellen identified this situation in a letter to Congress last week. When this situation occurs, the Treasury usually takes certain “extraordinary measures” to mitigate the increase of debt such that debt levels remain under the debt ceiling. As you may know, the closing of the State and Local Government Series (SLGS) window is typically one of these extraordinary measures. However, the Bureau of the Fiscal Service has announced that for now, the SLGS window will remain open. We will continue to monitor and keep you apprised of any updates or developments regarding the availability of SLGS.
As a reminder, whether or not the SLGS window is open, open market securities (“OMS”) has proven to be a valuable substitute vs. SLGS for many refunding escrows. We encourage you, as always, to reach out to us for an OMS indication and SLGS comparison to determine if there is value to your transaction in utilizing OMS.
Meet our Author:
Georgina Walleshauser, Vice President | 952-746-6036
Georgina Walleshauser joined Blue Rose in 2017 as an Analyst, providing modeling, analytics, market data, and research in support of the delivery of capital planning, debt and derivatives advisory, and reinvestment services to our clients. In the role of Associate, she utilized her experience as an Analyst in a more client-facing role, while still performing much of the analysis utilized in this capacity. In her role of Assistant Vice President, she will be tasked with growing client management responsibilities, in particular ensuring that our clients’ transactions run smoothly through closing.
Megan Roth, Marketing Manager