1.
Municipal
Bond Concepts
a.
Time
Value of Money
i. Future value
ii. Present value
iii. Annuities
iv. The yield curve
2.
Bond
Basics
a.
Terminology
b.
Types
of bonds
i. Fixed rate
ii. Variable rate
1.
Review
of types of liquidity (self, SBPA, LOC)
c.
Determining
price of a bond
d.
New
money bonds
i. The Tao of municipal bond sizing
1.
Sizing
2.
Costs
of issuance
a.
Review
of financing team and roles
3.
Underwriter’s
discount
4.
Reserve
funds
5.
Bond
insurance
6.
Capitalized
interest
7.
Debt
service structure
8.
Bond
structure
9.
Bond
statistics
ii. Review of new money DBC numbers
e.
Overview
of IRS Arbitrage regulations
f.
Overview
of types of sale (competitive and negotiated)
3.
Refundings
a.
Types
of refundings
i. Advance vs. Current refundings, changes
to tax law
b.
Rationale(s)
for refunding
c.
Refunding
math and economics
d.
Review
of refunding DBC numbers
4.
Swaps
refresher
5.
Muni
Market update