IGFOA On-Demand Webinar | Arbitrage Rebate Compliance and Strategies for Bonds in the Current Interest Rate Environment

Event Cost

Event Description

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

NASBA CPE: IGFOA on-demand webinars are not eligible for NASBA CPE

The GoToWebinar link to the on-demand training will be provided in the confirmation email once registration is completed.