The Capital Issue

Fall 2011

The fall edition of The Capital Issue features three “how-to” articles: one on selecting the right credit-rating agency when funding a capital project with a rated bond issue; the second on guiding nonprofit senior-living providers through negotiating a facility’s sale; and then Steve Kennedy’s tongue-in-cheek advice to community hospitals on playing a winning hand despite the odds. We’re also pleased to present explanations of the newly updated MAP guide to FHA multifamily housing and, in The Nonprofit Minute, the value premium that exists in the U.S. equity market. Please contact us if you have any questions on these topics or would like us to visit in person to explain them.

Thomas R. Green, CEO

Making the Grade: Choosing the Right Rating Agency
10/5/2011

Making the Grade: Choosing the Right Rating Agency

You’ve decided to fund your next capital project with a rated bond issue. Your next step is to decide which credit rating agency (CRA) to use. Now the dilemma: how do you pick the one that will get you the lowest cost of capital?

Community Hospital Project Poker: How to Play a Winning Hand
10/4/2011

Community Hospital Project Poker: How to Play a Winning Hand

Let’s face it, community hospitals. When playing the financing game, the cards aren’t exactly stacked in your favor.

Nonprofits: The Art of Negotiating a Sale
10/3/2011

Nonprofits: The Art of Negotiating a Sale

Divestitures, mergers and acquisitions-the words evoke an image of Wall Street and corporate wheeling and dealing, which seems like a far cry from the world of nonprofit senior living.

Updated Road MAP to FHA Multifamily Housing
10/2/2011

Updated Road MAP to FHA Multifamily Housing

Imagine the frustration if nearly through your drive to scope out a potential site for a new development or acquisition opportunity, your GPS navigation unit directs you to turn on a road that no longer exists. As you pass the defunct intersection and scramble to find an alternate route, you wonder when and why the road was closed and, most importantly, why the device you rely on was loaded with map information from nearly a decade ago.

Is There a Value Premium in the U.S. Equity Market?
10/1/2011

Is There a Value Premium in the U.S. Equity Market?

In order to outperform the broad U.S. equity market, most institutional investors focus primarily on hiring active managers to outperform a narrow part of the market, such as large-cap growth or small-cap value, while maintaining an equal allocation between growth stocks and value stocks. In addition to active management, however, institutions should also consider taking advantage of a structural bias that exists in the U.S. equity market: the outperformance of value stocks relative to growth stocks over longer periods (the value premium).