The financial market turmoil that exploded last August with the sub-prime crisis has developed into one of the country’s largest financial upsets since World War II. The consequences have expanded into the municipal debt markets with the implosion of the auction rate markets, the dislocation of the variable rate markets, and the financial difficulties experienced by many of the bond insurers — and the stress in the market shows no signs of abating.
The municipal credit market could remain dislocated for months, for several reasons: the market for auction rate securities is dramatically reduced; bank capacity for issuing letters of credit is strained; many bond insurance companies remain under credit watch; and bonds volume has spiked as issuers and borrowers seek to extricate themselves from unfavorable auction rate and variable rate deals. The good news is that underlying taxable interest rates likely will remain low as the Federal Reserve fights recession, and the municipal market’s turmoil may lessen as product moves through the pipeline.
Our recent Foley Executive Briefing Series discussion provided practical tips for surviving the dislocated market. This interactive session was moderated by David Y. Bannard, Foley Special Counsel and member of the firm’s Finance & Financial Institutions, Public Finance Services, and Real Estate Practices; Chris Doyle, Managing Director, The PFM Group; Danielle Manning, Director of Financing Programs, Massachusetts Health and Educational Facilities Authority; and Jami Loh, First Vice President, Director of Not for Profit Financing Programs, MassDevelopment.
For questions about registering, please contact Wendy Decker at [email protected] or 617.342.4000.
For more information on this program, contact David Bannard at [email protected], 617.342.4000, or Foley & Lardner LLP, 111 Huntington Avenue, Boston, Massachusetts 02199.
Dealing With a Dislocated Municipal Debt Marketplace: How to Survive the Storm is part of the Foley Executive Briefing Series. Learn more about upcoming programs in the series at Foley.com/FEBS.