Rising demand for taxable municipal income bonds over the last six quarters despite the COVID-19 pandemic led to 1H20 issuances soaring to 3x the 2019 equivalent. Taxable municipal income bonds not only offer flexibility to issuers on the use of proceeds but also generate higher yields despite having top ratings and much lower default rates, making them an attractive buy for investors.
In the current market environment, this growing segment, especially general obligation bonds, water and sewer bonds and higher education bonds (which demonstrated resilience amid the COVID-19 pandemic), among others, present significant opportunities to underwriting bankers in participating to participate in and facilitate the bond-sale process.
At Acuity Knowledge Partners, we help investment banking teams scale up their public finance underwriting practices and drive value for their clients. By leveraging dedicated teams of experienced analysts in our offshore delivery centres, clients benefit from operational efficiency and cost optimisation. Our team of public finance experts are well versed in covering municipal financing and public sectors and are vested with state-of-the-art modelling capabilities. Many of our clients working with our specialised public finance investment banking teams have benefited from our integrated suite of services along the investment banking advisory value chain.
Benefits and Impact
Our Offerings
Public Finance Solutions
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Public Finance Solutions
Municipal bond market update
Proposal/RFP support
Underwriter discount analysis/bond pricing analysis
Bond comparable analysis
Research on county and municipal authorities
Bond sale marketing deck
Bondholder analysis
Bond portfolio tracking and performance analysis
Screening for upcoming projects/deals (database management)
Sectors Covered
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Sectors Covered
State and local governments
Water and sewer
Higher education
Energy and renewables
Healthcare
Housing and senior living
K-12 education
Hospitality
Transportation and infrastructure development
Cultural and social service non-profits
Broad Areas of Support
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Broad Areas of Support
Pitchbooks
Information memorandums
Capital structure and covenant analysis
New bond/pipeline issuance database management
Debt comparable and bank group analysis
Yield/liquidity analysis and bond pricing updates
Modelling: LBO, M&A, bond pricing update and scenario analysis
Industry/thematic studies
Market overview/newsletters
Technology-enabled solutions – BEAT
Presentations and Graphics Services (DTP)
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Presentations and Graphics Services (DTP)
Presentation services/layout and creative designs
Theme-based investor presentations (transaction-specific)
Information-memorandum designs
Pitchbook standardisation
HTML and modern design support