For issuers of tax-exempt bonds, ongoing arbitrage compliance involves several requirements that can continue long after bonds are issued. Two terms that frequently come up during this process are arbitrage rebate and yield restriction. While the two requirements are closely related, they are not the same. Understanding the difference between arbitrage rebate and yield restriction, …
Municipal bonds serve as the foundation of infrastructure development, providing tax-exempt returns to investors while fueling the construction of essential projects across our communities. These bonds, once issued, also create opportunities for the issuers to generate potential arbitrage opportunities. With the Federal Reserve increasing interest rates over the last few years to ease inflation, this …