The Advanced Bond Finance WebCourse is designed for professionals who already have an understanding of tax-exempt financing and seek detailed instruction on complex financing techniques, including the application of financial derivatives, advance refundings, investing bond proceeds and how to spot arbitrage issues. With recent flux in the credit markets and an increased use of tax-exempt bonds, the need for in-depth education and awareness of these changes is vital. This course is an ideal opportunity to enhance your knowledge and maximize your community's ability to finance economic development using tax-exempt bonds.
The Advanced Bond Finance WebCourse is presented via the web over three days and includes lectures and presentations from speakers throughout the country. During each session, attendees can raise their hands, ask questions, comment on presentations and take interactive polls. CDFA's Course Advisor moderates the WebCourse to ensure speaker and participant interaction throughout.
Participants must have access to a computer and phone to attend the WebCourse. Participants receive instructions for logging into the WebCourse in a follow-up email after registering. Course materials are mailed to participants approximately one week before the course.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
By attending, you will:
- Understand trends and forces impacting today's volatile bond market.
- Examine the key principles of interest rate swaps, when to consider them, and the risks and benefits associated with swaps.
- Discover best practices for negotiating professional fees in a bond transaction.
- Learn about investing bond proceeds, how to spot arbitrage issues, calculating yield, advance refundings, and other complex municipal financing techniques.
- Hear from representatives at the IRS and MSRB about current regulatory matters in the bond markets.
- Discuss various forms of credit enhancement and the availability of this form of financing given current market conditions.
- Be able to provide better guidance to customers after hearing expert panelists explain common challenges in bond transactions and how to overcome them.
- Receive the latest edition of CDFA’s Advanced Bond Finance Reference Guide.
|
|
You will learn through:
- Real life case studies
- Interactive, small group exercises
- Presentations from industry experts
- A comprehensive course book
|
|
Topics covered include:
- IRS and Financial Markets Update
- Interest Rate Swaps
- Arbitrage and Rebate Concepts
- Advanced Refundings
- Credit Enhancement Techniques
- MSRB Rules and Disclosure Requirements
- Investing Bond Proceeds
|
|
Who should attend?
- Bond Issuers
- Economic Development Professionals
- Community Development Professionals
- Broker/Dealers and Underwriters
- Elected Officials
- Government and Nonprofit Finance Officers
- Corporate Trustees
- Legal Counsel
- Underwriters
- Commercial Bankers
- Accountants
|
Course Advisor:
Jerry J. Arkebauer serves as the Council's Bond Finance Course Advisor providing expertise, leadership, and direction for CDFA's Training Institute. Arkebauer's subject knowledge and experience provides CDFA with a unique insight into the use of bond financing for spurring investment and economic development.
Mr. Arkebauer served as Vice President of Finance for the Toledo-Lucas County Port Authority from 1997 to 2006 where he was responsible for developing the Port Authority’s Northwest Ohio Bond Fund Program and other stand-alone bond issues. He has completed 89 bond issues for more than $1 billion. Similar Bond Fund Programs later were initiated at four other Ohio Port Authorities to offer long-term, fixed rate bond financing for fixed assets. He also is president of Arkebauer & Associates, LLC, a business and public sector consulting firm he established in 2007. Through consulting contracts, Mr. Arkebauer serves as a consultant to the Blanchard Valley Port Authority, with offices in Findlay, Ohio; the Regional Port Authority of Northwest Ohio, with offices in Defiance, Ohio; the Sandusky County – Seneca County Port Authority with offices in Tiffin, Ohio; and the Port Authority of Springfield, Ohio.
Mr. Arkebauer received a Bachelor of Arts degree from the University of Toledo, and he is also the administrator of the Northwest Ohio Regional Economic Development Association (NORED) which represents economic development professionals in 12 Northwest Ohio counties.
|
The following is the preliminary agenda for this course. This agenda will be updated and modified slightly to accommodate speakers and content. However, the main areas of content as outlined in this agenda will be covered.
| 1:00 – 1:30 pm | Welcome & Overview |
| 1:30 – 2:15 pm | Market Update |
The WebCourse starts with an update on market conditions during a time of exceptional volatility in the capital and municipal markets. Experts explain the challenges issuers are facing and other forces impacting the bond markets.
| 2:15 – 3:00 pm | Interest Rate Swaps |
This session begins with an explanation of Variable Rate Demand Obligation bonds secured by Letters of Credit and then continues on with the key principles of interest rate swaps. The speakers will explain common types of swaps, why issuers consider swaps, the risks involved, and pricing and financial benefits. Case studies are also presented.
| 3:00 – 4:00 pm | Interest Rate Swaps (Continued) |
| 4:00 – 5:00 pm | Negotiating Professional Fees |
The key to negotiating fees paid to bond professionals is to make their selection as competitive as possible. This session will discuss how to select the most competent and qualified professionals, including bond counsels, underwriters, placement agents, financial advisors, and trustees.
| 1:00 – 2:00 pm | Investing Bond Proceeds |
Issuers face a number of challenges to responsibly invest bond proceeds. This session examines the basic types of investments and how they work to manage credit, market, and reinvestment risks. Next, rating agency considerations are reviewed and then the session turns to what should be included in proposals to solicit bids.
| 2:00 – 2:45 pm | Arbitrage and Rebate |
Understanding arbitrage and rebate is a necessary component of the bond financing process. During this session, speakers will explain basic tax restrictions on arbitrage, adjustments for guarantee fees and adjustments for payments and swaps, yield restriction/temporary period, yield reduction payments, yield on nonpurpose investments, purpose and program investments.
| 3:00 – 4:00 pm | Rebate and Calculating Yield |
This session will provide insight on rules governing rebate. Speakers will also discuss what “yield” is and how it is calculated. Case studies will also be presented.
| 4:00 – 5:00 pm | IRS and MSRB Update |
This session will discuss the role of the Internal Revenue Service and the Municipal Securities Rule Making Board with particular attention paid to regulations that are most critical to issuers in the bond financing process.
| 1:00 – 1:45 pm | Advance Refundings Case Studies |
This session explains how advance refundings work and why issuers utilize them. Material covered includes: general prohibitions, limitations, and how the arbitrage rules apply. A case study example will be discussed.
| 1:45 – 2:45 pm | Credit Enhancement |
In the past, over 60% of tax-exempt bonds were issued with some form of credit enhancement. Since 2008, this percentage has declined dramatically, yet some forms of credit enhancement are still viable. This session reviews forms of credit enhancement other than letters of credit, including senior and subordinate bond structures, bond insurance, and state credit enhancement programs.
| 3:00 – 4:00 pm | Bond Guaranty Programs |
States or cities that adopt credit enhancement programs on bonds do so to promote economic development and job creation by leveraging private investment with low-cost municipal (either tax-exempt or taxable) financing. This session will highlight some of the more successful bond guaranty programs in the nation and explain how they operate.
| 4:00 – 5:00 pm | Case Study |
The speakers will focus on a single bond-funded project to illustrate many of the major concepts covered in the WebCourse. This session will bring together the key players in the transaction and discuss how the deal was structured and lessons learned.
Check back for upcoming course dates or email CDFA to find out when this course will next be offered.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
| Early-Bird Registration | Standard Registration |
| Member | $550.00 | $600.00 |
| Non-Member | $675.00 | $725.00 |
|