For the second time since pandemic began, municipal market data has dropped to $1.27%, an all-time low in the history of 30-year AAA-rated MMD, according to an article released Wednesday by Ziegler specialty investment bank. The last time the MMD dipped to a previous record low was in early March when the pandemic first hit, at which time MMD fell to 1.38%.
These rates translate into highly favorable borrowing conditions for senior living and care operators, noted Adam Buchanan, director and head underwriter of capital markets at Ziegler, during a webinar last week providing updates on the not-for-profit senior living and care sector. He added that it’s unclear how long the record lows will last, given that the average MMD rate going back since the year 200 has been 3.87%
“We’re 2.3% below the 20-year average,” Buchanan said, adding that these rock-bottom rates will be a big boost in helping operators keep their cost of capital low.
“It’s a really good time to be a borrower,” he concluded.
