1. Art and Diseño

HIGHER EDUCATION MARKET UPDATE
2/2/2015
Market Commentary
Recent Higher Education Pricings
Final
•Last week in the higher education sector, three issues priced with a total par
amount of $129.6 million.
Borrower (State)
State Description
Par (000s)
•Last week the market’s focus was on the FOMC and the GDP release on
Friday. Both of those events, coupled with more weakness out of Europe,
produced volatility in the fixed income markets.
Auraria Higher Education Center
CO
Parking Enterprise Revenue Refunding Bonds, Series 2015
6,030
•The market's attention turns to fundamentals this week in the form of more
economic data, highlighted by Friday’s release of the January employment
report.
Board of Trustees of the University of Arkansas
AR
Athletic Facilities Revenue Refunding Bonds, Series 2015A
(Fayetteville Campus)
•The municipal market continues to lag treasuries; the larger calendar this
week has put munis under pressure. Ratios have reached very attractive
levels and should bring in some crossover buyers.
Board of Trustees of the University of Illinois
IL
University of Illinois Auxiliary Facilities System Refunding Revenue
Bonds, Series 2015A
Maturity
Spread
Ratings
6/1/2029
55.3
A2 / AA /
NR
14,180
9/15/2022
30.1
Aa2 / NR /
NR
109,340
6/1/2038
102.6
Aa3 / AA- /
NR
Source: Thomson Reuters; Spread is the weighted average spread over the AAA G.O. MMD curve or the Treasury curve if Taxable
•Municipal bond funds reported $892.5 million in inflows versus the previous
week’s inflows of $771.2 million. The 4 week moving average is a positive
$922.5 million.
Key Interest Rates (%)
Description
Last Close
1mth ago
1yr ago
5yrs ago
Prime Rate
3.25
3.25
3.25
3.25
1-month LIBOR
0.17
0.17
0.16
0.23
3-month LIBOR
0.25
0.26
0.24
0.25
SIFMA Index
0.02
0.03
0.04
0.20
12-month Treasury Note
0.14
0.21
0.08
0.29
2-year Treasury Bond
0.45
0.66
0.33
0.85
3-year Treasury Bond
0.74
1.07
0.66
1.39
5-year Treasury Bond
1.15
1.65
1.49
2.36
10-year Treasury Bond
1.64
2.17
2.64
3.64
30-year Treasury Bond
2.22
2.75
3.60
4.56
Source: Bloomberg
Tax-Exempt AAA General Obligation Yields (%)
Index
Last Close
1mth ago
1yr ago
5yrs ago
1-year AAA G.O. Rate
0.14
0.16
0.17
0.28
2-year AAA G.O. Rate
0.41
0.48
0.30
0.61
3-year AAA G.O. Rate
0.59
0.78
0.49
0.86
5-year AAA G.O. Rate
0.94
1.32
1.10
1.60
10-year AAA G.O. Rate
1.72
2.04
2.53
2.96
30-year AAA G.O. Rate
2.50
2.86
3.85
4.20
Upcoming Higher Education Pricings
Borrower (State)
State Description
Sale Date
Par (000s)
Ratings
Nevada Sys of Hgr Ed
NV
Universities Revenue Bonds, Series 2015A
2/3/2015
64,320
Aa2/AA-/-
Nevada Sys of Hgr Ed [D]
NV
Taxable Universities Revenue Bonds, Series 2015B Taxable
2/3/2015
7,535
Aa2/AA-/-
Iowa BOR
IA
Athletic Facilities Revenue Bonds, Series I.S.U. 2015 (Iowa State
University of Science and Technology)
2/5/2015
32,335
-/-/-
week of
02/02/15
8,935
-/-/-
University City SD
MO
General Obligation Bonds, Series A - Refunding and Series B
Coastal Carolina Univ
SC
Higher Education Revenue Bonds, Series 2015
2/10/2015
94,990
A1/-/A+
Minnesota State Coll & Univ
MN
Revenue Fund and Refunding Bonds, Series 2015A
2/11/2015
36,060
-/-/-
Minnesota State Coll & Univ
MN
Revenue Fund Bonds, Series 2015B (Taxable)
2/11/2015
41,790
-/-/-
Source: Thomson Reuters
Source: Thomson Reuters
AAA MMD v. SIFMA Swap v. 70% of LIBOR Swap
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
AAA MMD Avg
SIFMA Avg
70% of LIBOR Avg
AAA MMD
SIFMA
70% of LIBOR
0.00
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Averages reflect data since January 3, 2000
Source: MMD data from Thomson Reuters; SIFMA and LIBOR data from Bloomberg
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