Arbitrage rebate compliance represents one of the more complex areas of bond management and spending exceptions have emerged as a key strategy for issuers to minimize their potential tax liabilities. Spending exceptions are helpful tools that allow debt issuers to keep all investment earnings upon meeting certain criteria. They also provide a strategic pathway for …
When it comes to managing your tax-exempt bond portfolio, understanding arbitrage rebate calculations is crucial for municipalities, water and sewer districts, and other issuers of tax-exempt debt. Non-compliance with IRS regulations can lead to significant financial penalties, making it essential to stay informed and accurate in your calculations. In this article, we will explore the …
Tax-exempt bonds are an excellent way for municipalities, such as schools, cities, or counties to pay for projects. These projects, or capital expenditures, may be buildings or other new construction, or even renovations to existing structures. When the municipality issues these bonds — called municipal bonds — the bonds’ tax-exempt status makes them attractive to …