Cutting-edge Structuring and Refunding Analysis

MuniCycle enables issuers, advisors, and underwriters to analyze contemplated transactions. This powerful tool offers option-based analysis for current refunding, and new issue structuring with different coupons and call protection periods.

With the elimination of advanced refunding, bond structures with calls shorter than 10 years and coupons lower than 5% are becoming more prevalent. Market participants need rigorous analytics to compare alternative structures. On the refunding side, escrow costs and negative arbitrage are no longer relevant, but issuers do need to ensure that they are excercising call options efficiently.

Key Features

MuniCycle is available as a feature-rich Excel add-in for fast and convenient desktop use.

  • Extracts spot rates from 5% callable scale for proper discounting
  • Determines fair price given coupon, maturity, and call date
  • Incorporates transaction costs
  • Signals when to call, based on refunding efficiency
  • Ranks refunding candidates by savings and efficiency
  • Present value savings supported by schedule of cashflows, discounted at spot rate

Yield Curve Conversion

Structuring Analysis

Refunding+ Structuring Analysis

Refunding Analysis

Refunding+ Refunding Analysis