Birmingham, AL (PRWEB) February 09, 2012
Regardless of how good or bad the economy is at any given moment, municipal governments always have projects that need completing, which means they always have expenses. A school district often has little choice in whether or not new school buildings are needed, just as a city or county cannot long delay urgent highway maintenance or repair work. This work needs to be done even when budgets are tight, which is why so many local governments have reacted with excitement over recent news of low municipal bond rates. According to a new Bloomberg report, the rates for municipal bonds recently hit historic lows and continue to offer great financing opportunities, something the investment bankers at Gardnyr Michael Capital are truly emphasizing to their clients.
As a public finance company, Gardnyr Michael Capital boasts a client list that consists largely of local governing agencies, including cities, towns, counties, public utilities, and school districts. The firm’s Nick Bryant says these clients are precisely the entities who stand to benefit most from the historically low rates on municipal bonds. “This is a tremendous boon to these local municipalities, because it means they can borrow money at a better rate than ever before,” he says. “Ultimately, the kinds of development and maintenance projects they face are not optional. These projects have to be funded, and municipal bonds can offer them the most affordable way to do that.”
Bloomberg’s report notes that municipal bonds have been rallying since January, and Gardnyr Michael Capital says it is the ideal time to take advantage of these low rates. The company, which also offers financial planning to Community Development Districts, assists its municipal clients with all aspects of financing, including underwriting these bonds and selling them on the open market. The revenues from those bonds can then be used to finance everything from highway construction to storm water removal.
“The low rates on municipal bonds enables our clients to complete more of their projects while spending less money,” comments Bryant. “That’s why Gardnyr Michael Capital is emphasizing these municipal bond services right now.” Bryant likens the scenario to an individual seeking to purchase an automobile. “If a family needs a car, then the family needs a car. Having low interest rates makes it that much easier for the family to buy it today. Similarly, local governments need to secure financing regardless of the economy, and low municipal bond rates make that easier to do.”
In addition to underwriting, issuing, and selling municipal bonds on the primary market, Gardnyr Michael Capital also trades bonds on the secondary market, and offers more general financial planning services to local governments. Since its 1991 inception, the company has completed more than $15 billion in public financings.
Gardnyr Michael Capital is an investment banking firm that emphasizes its services in public finance. Founded in 1991, the firm has grown into a team of approximately twenty-five financial professionals, with offices in Alabama, Louisiana, Texas, New York, New Jersey and Florida. Gardnyr Michael Capital specializes in underwriting, private placement and financial advisory work on behalf of states, cities, counties, and their authorities, as well as for more specialized issuers such as 501c3 and special districts.