Laserfiche WebLink
Page 1 of 1 <br /> 110 Bryan Adams <br /> From: "Leo Lawrenson" <Leo@Lawrenson corn> <br /> I <br /> To: <bryada@nsatel.net> <br /> Cc: "'Jack Kegel"' <jkegel@mmua.org>; "'Anthony Hedlof" <ahedlof@mmua.org> <br /> Sent: Thursday, September 22, 2005 7:34 AM <br /> I Attach: BMA History 9-7-05.pdf <br /> Subject: MMUA Variable Rate <br /> As Jack Kegel has requested, I have attached a graph depicting the history of tax-exempt variable rates, the Bond <br /> I Market Association (BMA) Municipal Swap Index, a very good indicator of where MCMU Program rates would <br /> have been, even before the MCMU Program came into existence. As you can see on the graph, last week's BMA <br /> was 2.43%, while the historical average (over 20 years) is 3.473%. The average over the last year is 2.094%, <br /> I <br /> and the last 5 years is 1.823%. There has never been a period in the last 25 years where variable rate hasn't <br /> averaged lower than fixed rate for any term over 10 years. <br /> By way of comparison, our current fixed rate for a 30-yr Loan term (18-yr Weighted Average Maturity) is 4.04%, <br /> ' for a 20-yr term (12-yr WAM) is 3.82%, and for a 10-yr term (6-yr WAM) is 3.47%. <br /> To all the above mentioned rates (variable or fixed), we add approximately 0.80-0.90% for ongoing fees and costs <br /> Iof issuance, so the all-in yield on a MCMU Loan would be approximately that much higher. <br /> If you have any questions, please don't hesitate to call me direct. Thanks! <br /> I -Leo <br /> apLeo J. Lawrenson, President <br /> Lawrenson Services Inc. <br /> 1393 Riverview Run Lane <br /> Suwanee, Georgia 30024 <br /> I <br /> Leo@Lawrenson.com <br /> Phone 678-714-4933 Fax 678-714-4678 <br /> I <br /> I <br /> I <br /> I <br /> la <br /> I10/6/2005 <br />