As low interest rates suppress investment income and low conventional mortgage rates prevent SHFAs from issuing new tax-exempt bonds to fund new mortgage lending, SHFAs continue to find other ways to remain profitable.
The median net interest spread (NIS) ratio for the 35 SHFAs saw a slight reduction in fiscal 2013 compared with the previous year.
Leverage ratios continued to improve as the median adjusted debt-to-equity ratio for the 35 SHFAs declined to 3.6 times (x) in fiscal 2013 from 4.2x in fiscal 2012.
The percentage of variable-rate debt outstanding for the 35 SHFAs decreased to 20.3% in fiscal 2013 from 21.8% in fiscal 2012, the third straight year of declines in variable-rate debt outstanding.
The report is available on the Fitch Ratings web site, 'www.fitchratings.com', under Public Finance.
Additional information is available at 'www.fitchratings.com'.
Source: Fitch Ratings
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