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Happy 2014! Interest Rates in the New Year

Strong jobs report in December encourages the Fed to taper $10 billion of the $85 billion monthly bond buying program. The effects of the taper are evident in the rise of the 10-year treasury which has risen 1.08% in one year. From the lows of last year, interest rates have increased an average of .65%. Current 10-year treasury rate stands at 3%. The rise in interest rates have been seen across the board in terms of financing we have obtained for clients in the last 2 years. In 2012, we saw interest rates for tax-exempt private placement loans as low as 2.18% for 7 years and as high as 2.89% for 7 years in 2013. 10-year swap all-in rates have also been on the rise. In 2012 we saw swaps at 2.6% for 10 years and in 2013, swaps rates increased to 3.2%. Ultimately, rates are on the rise which was inevitable as the economy and employment recovers from the recession in 2008. Although 2012 tax-exempt rates were at historical lows, the 20 year average shows rates are still significantly lower than just 5 years ago. Still a great time to refinance if you haven’t done it in the last 2 years. Happy New Year to everyone! Hope you all had a great holiday season. In addition to our San Francisco Bay Area office and our Sacramento office, we are proud to announce the opening of our Seattle office in summer of 2014!

By |January 9th, 2014|Uncategorized|Comments Off on Happy 2014! Interest Rates in the New Year

Western Solutions to Present at AFSA: Association of French Schools in North America

Western Solutions is honored to present at the annual conference of the Association of French Schools in North America. Scheduled for February 2-4  2014 in Austin, Texas, Western Solutions’ CEO will be discussing financial sustainability for non-profits in the current market place.  With an emphasis on schools’ financial goals in alignment with a focused mission, we will present financial strategies to assist schools in making long term financing decisions that will inevitably lead to continued success.  We are looking forward to supporting our French bilingual school community! Merci, AFSA nous sommes tres heureux !

By |October 3rd, 2013|Uncategorized|Comments Off on Western Solutions to Present at AFSA: Association of French Schools in North America
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    Western Solutions Sponsors TED x / Rates Rise Western Solutions Sponsors TED x / Rates Rise

    Western Solutions Sponsors TED x / Rates Rise

Western Solutions Sponsors TED x / Rates Rise

June was a busy month for Western Solutions! In the midst of many of our school clients ending the school year, they also closed new financings; locking in historically low fixed interest rates. Speaking of interest rates, in the last few weeks, rates have increased slowing but significantly due to the feds comments on the outlook of the economy and the decreasing unemployment rate. Although rates are rising, they are still at historical lows. Any non-profits considering refinancing or future financing should take these slowly rising rates as a sign that it might be time to lock rates now.  Many experts predicted that rates would stay relatively low until 2015, however with the looks of things today, rates are increasing faster than expected. Time is still on your side, but waiting too long could be costly. In June, Western Solutions was proud to sponsor TED x Livermore. It was not only a privilege to be a sponsor, but also to attend. The TED x Livermore conference was incredibly inspirational offering wonderful insight on new education initiatives and entrepreneurial pursuits. It was a great pleasure to be apart of the conference and we encourage everyone to attend TED x conferences which are located all around the world. Here’s too a safe and happy summer!

By |July 9th, 2013|Uncategorized|Comments Off on Western Solutions Sponsors TED x / Rates Rise
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    Western Solutions Inc. Snowboards With Wounded Warriors Western Solutions Inc. Snowboards With Wounded Warriors

    Western Solutions Inc. Snowboards With Wounded Warriors

Western Solutions Inc. Snowboards With Wounded Warriors

Every year, employees from Western Solutions Inc. volunteer to teach veterans and active duty members wounded in Iraq and Afghanistan to snowboard. For four days this past week, two of our employees instructed an army veteran and an active duty Navy officer at three different resorts in Lake Tahoe. This years event was particularly exciting for our employees not only because the wounded warriors that were taught were exceptionally athletic and rather easy to teach, but also because our employees made life long friendships and riding partners with the military service members.  We are so grateful for the sacrifice our military service members make for us and we couldn’t be happier that snowboarding has inspired our new friendships. Thank you so much Chris, Robert, Rebecca and Karen! You made our whole year! 

By |April 8th, 2013|Uncategorized|Comments Off on Western Solutions Inc. Snowboards With Wounded Warriors
  • swapdogs
    swaps make a comeback in 2013! swaps make a comeback in 2013!

    swaps make a comeback in 2013!

swaps make a comeback in 2013!

What does the loan market hold for non-profits in 2013? In previous years, using a swap as a hedging product has put many non-profits in a bad position due to the high exit fees and the term of the swap versus the term of the loan. In today’s market, many analysts believe that swaps may be more beneficial to clients in comparison to other fixed rate loans, given that swaps match specific loan terms. In the past, non-profits’ have set up 10 year loan terms and 30 year swap terms. When their 10 year loan is up, they are left with 20 years on their swap. Exiting a 20 year swap can cost millions of dollars. The problem has been that clients were not given the proper information on the risks associated with setting up a swap for a longer term than their loan. Swaps ultimately have a very bad name and have consequently cost non-profits millions. Swaps, however, are not the enemy. I have yet to come in contact with a non-profit trying to exit a swap that was set out for the exact term of their loan. Thus, it seems the enemy is lack of information on swap risk. Swaps can actually be an excellent hedging product, offering non-profit clients extremely low interest rates while providing the security of a fixed rate loan. The most important thing to remember is to only set a swap out for the exact term of the loan. 2013 actually has a pretty good outlook for non-profits to use swaps to fix variable rate debt. Quite a turn round from the last few years! Since it’s the winter season, we are continuing to volunteer at Disabled Sports on […]

By |February 12th, 2013|Uncategorized|Comments Off on swaps make a comeback in 2013!
  • Western Solutions Blog Dogs
    Western Solutions launches interactive website! Western Solutions launches interactive website!

    Western Solutions launches interactive website!

Western Solutions launches interactive website!

Western Solutions is proud to announce the launch of a new interactive website! Our new website is designed to assist new and existing clients during and after financing. A secured log-in space allows clients to view and share specific documents. In the past, our clients have found it difficult to keep up with all of the documents, closing dates, hearings, timelines, distribution lists etc. Our website will have all of these items posted and viewable in one place through a secured log-in. This new feature will simplify the bond/loan process by keeping everyone on the same page and pushing the process along more smoothly and efficiently. In addition to the new log-in space, we are also posting a company blog each month to discuss business news in the municipal finance market and within Western Solutions. We hope our blog updates help our new and existing clients feel more connected to our company and more “in the loop” with the current non-profit market place. We intend to make our blogs more “colorful” than typical financing so please check-in with us each month to see what’s happening in the world of tax-exempt financing and with Western Solutions!