The Advanced Bond Finance Course 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, how to spot arbitrage issues, and investing bond proceeds. 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.
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:
- Hear about must know municipal finance tools, techniques and other topics
- Be able to provide better guidance to customers
- Learn about the application of interest rate swaps, new Federal Home Loan Bank Letter of Credit, selling in adverse markets, advance refundings, how to spot arbitrage issues, invest bond proceeds and much more
- Receive a copy of the Advanced Bond Finance Reference Guide
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You will learn through:
- Real life case studies
- Interactive, small group exercises
- Presentations from industry experts
- A comprehensive course book
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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
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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
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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.
Jerry 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.
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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.
| 8:00 – 8:30 am | Continental Breakfast & Registration |
| 8:30 – 8:45 am | Welcome & Overview |
Welcome participants, introduce CDFA and set the stage for the day’s events.
| 8:45 – 9:15 am | Market Update |
This session begins with an update of market conditions during a time of exceptional volatility in the capital and municipal markets. Experts explain the challenges issuers are facing and what may happen during the year
| 9:15 – 10:15 am | Interest Rate Swaps |
This session begins with an examination of interest rate swaps. Subjects reviewed include: what they are and how they work, key features, documentation, why they are used, pricing and financial benefits, the risks (basis, termination, counterparty, rollover, amortization), variations such as reverse swap and swaptions, and other interest rate derivative products like caps and collars. Case studies are also reviewed.
| 10:30 am – 12:00 pm | Interest Rate Swaps (Continued) |
| 12:00 – 1:30 pm | Lunch On Your Own |
| 1:15 – 2:00 pm | Variable Rate Demand Obligations Secured by Letters of Credit and Recent Federal Home Loan Bank Rule Change |
Variable Rate Demand Obligations Secured by Letters of Credit (LOC) are one of the primary methods of issuing variable rate debt. Issuers need to understand how these bonds are structured to understand floating to fixed rate swaps. Recently, the Federal Home Loan Banks were authorized by Congress to provide confirming letters of credit on LOCs provided by their lower rated commercial bank members. This new program could provide a needed boost to the variable rate market.
| 2:00 – 3:00 pm | Build America Bonds and Recovery Zone Bonds (American Recovery and Reinvestment Act) |
Build America Bonds (BABs) have made a major impact in the development finance industry, and communities are now moving forward with Recovery Zone Bonds (RZBs). Passed as part of the American Recovery and Reinvestment Act of 2009, these new bonds are financing needed development throughout the country. The session will explore the use of BABs and RZBs and provide an overview on putting these tools to work in your community.
| 3:15 – 4:30 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.
| 8:00 – 9:00 am | Continental Breakfast |
| 9:00 – 9:30 am | Municipal Securities Rule Making Board (MSRB) Rules |
This session will discuss the role of the Municipal Securities Rule Making Board with particular attention paid to MSRB rules that are most critical to the issuers in the bond financing process.
| 9:30 – 10:30 am | Arbitrage and Rebate |
Topics covered include: Basic Tax Restrictions on arbitrage; bond yield; adjustments for guarantee fees; adjustments for payments and swaps; yield restriction/temporary period; yield reduction payments; investments of bond proceeds; yield on nonpurpose investments; purpose and program investments; and related topics. Case studies will be presented to highlight these elements.
| 10:45 – 12:00 pm | Rebate and How to Calculate Yield and Rebate |
This session will provide insight on rules governing rebate. Speakers will also discuss what “yield” is and how it is calculated. Case study examples focused on these elements will also be presented.
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| 12:00 – 1:15 pm | Lunch On Your Own |
| 1:15 – 2:00 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.
| 2:00 – 2: 30 pm | Internal Revenue Service Update |
The IRS rulings governing municipal bonds continually emerge. This session will review the latest IRS updates as well as some of the agency’s current initiatives that affect municipal bonds.
| 2:45 – 4:30 pm | Credit Enhancement |
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.
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 |
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