We are pleased to announce that Richa Sharma has joined the Blue Rose team as an Analyst.

Private Activity Bonds (“PABs”) are a specific type of municipal bond (“muni bonds”) where the ultimate borrower is often a nonprofit private entity. PABs allow these nonprofit organizations to issue tax-exempt bonds through conduit issuing authorities, unlike state and local governments that issue tax-exempt bonds under their own authority.

The tax-exempt bond market has been, and continues to be, extremely volatile with interest rate and credit spread fluctuations impacting refunding savings, increasing new money borrowing costs, and narrowing reinvestment options. In our latest article, we describe some themes we’re seeing in this challenging market and examples of how alternative reinvestment structures can be a useful tool.

Leveraging debt to fund campus improvements can be a complex part of the overall financial strategy for many colleges and universities. By carefully considering funding sources, managing their overall debt portfolios strategically, and carefully considering the credit impact of their financing plans, higher education institutions can position themselves for long-term financial health and promote their mission with intentional investment in projects to improve their campuses.