Sophisticated Quantitative Analysis Capabilities
PRAG’s quantitative and analytical capabilities form the core of our advice. Our quantitative analysis incorporates the same tools that the major Wall Street firms use in analyzing, developing and implementing new structures and products. When canned software proves insufficient to meet the needs of our analyses, we develop custom models using a combination of spreadsheet-driven templates, higher level computer languages (such as Visual Basic for Applications or VBA) and linear and non-linear optimization software modules (such as What’s Best!) to arrive at optimal output. As a testament to the importance we place on our analytical services, PRAG’s President, Steven Peyser, oversees our quantitative sector.
In-Depth Knowledge of Municipal Capital Markets
PRAG has extensive knowledge of the municipal capital markets due to our ongoing involvement in the market through the issuance of large amounts of debt for major and frequent municipal debt issuers including the State of California, The City of New York, the New York City Transitional Finance Authority and the Metropolitan Transportation Authority. We provide current information on market conditions, pricing and structures to our clients as we are constantly in the market and aware of trends in interest rates, changes in investor sentiment and newest products. We frequently communicate with syndicate managers across the spectrum of investment banks, both large national broker-dealers and smaller regional firms, which enables us to form a comprehensive view on rates, coupon preferences, spreads and investor demand for our clients’ securities. This knowledge and experience combined with our own in-house analysis enables us to provide clients with a comprehensive review of developments in the marketplace and the impact on municipal issuers. Our President, Steven Peyser, leads our market effort.
Understanding of Municipal Credit
PRAG is highly familiar with credit issues. One of PRAG’s significant strengths is knowledge of credit and experience with the rating agencies. The firm has developed an understanding of the rating agency process that we believe is unique to PRAG. We have frequent contact with the rating agencies and extensive experience in aiding our clients in the rating process, to not only maintain or improve existing ratings, yet also in designing new credits and executing rating strategies.
We advised three major counties – Baltimore, Chesterfield and Monmouth – on developing and implementing long-term credit strategies including debt affordability analyses and financial policies that improved their ratings to triple-triple-A from double-A. We also assisted the State of Florida in achieving a triple-A from Moody’s with the usage of a debt affordability analysis.