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, …
For bond issuers who issued bonds in late 2020 or early 2021, the end of the initial 3-year temporary period marked a critical juncture. If proceeds remained at this 3-year mark, a yield restriction calculation is required on the 5th year filing date. Performing interim yield restriction calculations now can help you stay ahead of …