Category: White Papers

Hospital M&A: Beginning of a New Frontier?

Imagine reading the following headlines five years ago: Six multi-billion dollar NFP-to-NFP health system mergers announced over past 12 months. Consolidation activity involving large community hospitals and regional health systems doubles. Only one transaction by a publicly traded FP acquirer not named HCA Healthcare in the calendar year; divestitures by FP increased fourfold. For the … Continued

The Impact of Tax Reform on the Municipal Market

While private activity bonds have been spared, the 2017 Tax Cuts and Jobs Act (the “Act”) will still impact tax-exempt markets The decrease in the corporate tax rate will reduce demand for tax-exempt bonds The decrease in supply due to the loss of advance refunding bonds will be offset by the reduced demand Publicly issued … Continued

Challenges in Public and Private Variable Rate Debt

Currently, there is a dislocation between SIFMA resets and its theoretical relationship with 1 month LIBOR Pre-2008 financial crisis, SIFMA reset between 60% and 70% of 1mL The current SIFMA / 1 month LIBOR ratio is approximately 86% Impact on SIFMA market is primarily a function of the decrease in demand due to Money Market … Continued

End of LIBOR Part 1

What you need to know before LIBOR disappears – Impact on Swaps and Variable Rate Debt The History The LIBOR scandal that emerged in 2008 highlighted a crucial flaw in the setting of LIBOR rates. Without enough direct trades from which to draw, some traders responsible for setting the rates via daily submissions were actually … Continued

Mergers & Acquisitions in the Hospital Industry

Since the beginning of 2010, mergers and acquisitions activity in the acute care sector has increased significantly. The rate at which hospital transactions are being announced has increased by over 50% in less than a year and a half. Activity is up significantly for both not-for-profit and for-profit healthcare systems. Internal discussions about potential consolidations, … Continued

Are You a Municipal Advisor?

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) may have a direct impact on you, your 501(c)3 organization, or your bond issuing authority.  On January 6, 2011, the Securities and Exchange Commission (“SEC”) issued proposed rules for the registration of municipal advisors. The proposed rules were part of the SEC’s implementation of … Continued

Why Banks Keep Buying Tax-Exempt Debt

Introduction:  Over the past two calendar years, commercial banks have been a significant source of tax-exempt financing for healthcare organizations. Driven by an expanded definition of “bank-qualified debt” provided in the American Recovery and Reinvestment Act of 2009, commercial banks issued approximately $70 billion of direct tax-exempt loans in 2009 and 2010. And, while the … Continued

The Layers of the Credit Crunch Onion

Overview This paper is intended as a follow up to our client update calls and meetings held during November. At that time, we recommended that clients monitor the market until late January, and at that time we would start to see the path to clarity in the tax exempt market. While we expect significant news … Continued