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 …
Municipal issuers and their advisors continue to navigate a changing landscape when it comes to arbitrage rebate and yield restriction compliance. As federal regulations evolve and market dynamics shift, staying informed about trends in these areas is more crucial than ever. In this blog post, we’ll break down what’s happening now and what’s on the …
Yield Restriction In Focus Cities all around this country are attracting more residents than ever before. It’s not an unprecedented shift for all, but some cities are experiencing their time in the limelight for the first time. The prospects for continued growth is there, but how will the infrastructure keep up? That’s where the tax-exempt …
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 …