Jan. 17, 2019: Municipal Finance Webinar

Event Date: 
January 17, 2019

Pricing New Issues with Non-Standard Call Features

Presented by Leslie Abreo

The elimination of advance refunding in 2018 disrupted the municipal landscape. Structures beyond the standard 5% non-call 10, such as 4.50% non-call 8, are emerging. How do we determine fair prices of these new structures? In light of the recognized illiquidity of munis, secondary market trades of similar bonds are unlikely to be informative.

Option-based analytics can provide a fast and accurate solution. Starting with the municipality’s conventional 5% non-call 10 yield curve, we can determine the fair price of an alternative structure. We will discuss practical considerations, such as the choice of interest rate volatility. You will see this in action with a live demonstration of our new web-based calculator MuniCycle. Webinar participants will be offered free access to MuniCycle for three months.

Webinar Slide Deck