Positive Arbitrage is Back! Arbitrage Rebate Compliance and Strategies for Bonds in the Current Interest Rate Environment
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|Field of Study||Finance - Technical|
|NASBA CPE||Earn 1.50 CPE Hours|
|Government / Partner Colleagues||$ 20.00|
Interest rates are at levels we have not seen in more than 15 years. The upward trend in interest rates that began in mid-2022 makes earning positive arbitrage more likely for Bonds issued today and, surprise!, even for Bonds issued in the low rate environment from 2018 to 2021. This session will provide an overview of the arbitrage rebate requirements with a focus on (i) when rebate calculations should be prepared, (ii) spending exceptions to the rebate requirement in the current interest rate environment, (iii) yield restriction analysis for unspent proceeds for new money issues at the end of the 3-year temporary period; (iv) what is a bona fide debt service fund, (v) fair market value of investments and yield burning, and (vi) when rebate payments must be paid to the IRS and the costs and consequences of a late rebate payment.
Learning Objectives: Participants completing this session will be able to:
- Determine key dates relevant to compliance, including rebate computation dates for each bond issue;
- Learn the benefit of meeting one of the spending exceptions to the rebate requirement;
- Become aware of the yield restriction requirement for (i) unspent proceeds for a new money issue at the 3-year temporary period and (ii) a non-bona fide debt service fund;
- Understand the importance of purchasing investments at fair market value and why yield burning is prohibited; and
- Understand the importance of making timely rebate payments.
Speakers: Samantha Duke, Senior Rebate Manager, Ice Miller LLP and Michael Steinbrook, Director, PFM Asset Management LLC
Intended Audience: Finance Professionals
Delivery Method: Internet Based
Program Level: Overview
Prerequisites: No prerequisites required
Advanced Preparation: No advanced preparation required
Field of Study: Finance -Technical
NASBA CPE: Earn About 1.5 CPE credit
Registration & Cancellation Policy
REGISTRATION AND CANCELLATION POLICY
Registrations are accepted on a first-in, first registered basis. Payments by check should be mailed in advance or made at time of registration by credit card.
Cancellation of an event registration is subject to the following policy:
• No refunds will be given for cancellations the day of the event and no shows.
• For IGFOA event registration cancellations five (5) business days or more prior to an event, refunds will be offset by a $20 cancellation fee.
• For IGFOA event registration cancellations within five (5) business days of the training, refunds will be offset by a cancellation fee of 50% of the registration fee.
• A substitute attendee may be designated provided that the payment has been made and the IGFOA office has been notified in advance.
• A written request for a refund must be emailed to the IGFOA prior to the event.
By submitting this registration, the applicant agrees to the registration and cancellation policy above.
IGFOA reserves the right to modify the agenda and/or speakers, cancel the training due to low enrollment, or to close registration if full. Should IGFOA cancel an event, cancellation notice will be sent to the email address provided by each registrant and prominently posted at the IGFOA website page announcing the event.
If you have questions about the cancellation and refund policy, your membership, or a complaint, please contact IGFOA at 630-942-6587. The IGFOA reserves the right to apply the non-member fee to any individual or government that has not paid dues for the current year.
Approved by the National Registry of CPE Sponsors
CPE Registry Illinois Government Finance Officers Association (IGFOA) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State Boards of Accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.