Municipal Finance

Creating a Live Yield Curve in the Illiquid Muni Market

Journal of Fixed Income (Summer 2017)

Municipal Bond Insurance: Identifying the Best Payment Plan

The Journal of Risk Finance Vol. 18 No. 1, 2017

The volume of municipal bond insurance declined dramatically following the financial crisis of 2008. Insurance now is making a gradual comeback. Two related considerations complicate identification of the best insurance plan. One is the current practice in the municipal market of issuing callable bonds with an above-market coupon; such bonds are very likely to be refunded. The other is that the cost of insurance may depend on when the bonds are refunded. This paper shows how contemporary fixed income analytics can be applied to identifying the best payment plan.

Don’t Waste a Free Lunch: Managing the Advance Refunding Option

Journal of Applied Corporate Finance

Making Bond Insurance Pay

The Bond Buyer, June 30, 2016

Optional redemption features are standard in municipal bond issues, so even a seemingly simple decision — selecting the best insurance plan — requires modern option-based analytics

Syndicate content