-Overview
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. Expert speakers will explore topics including the application of financial derivatives, advance refundings, investing bond proceeds, and how to spot arbitrage issues. This course is an ideal opportunity to enhance your knowledge and maximize your community's ability to finance economic development using tax-exempt bonds.
For professionals who are interested in learning the basics of bonds, CDFA offers an Intro Bond Finance Course.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Join us online, and start down the road to personal and professional advancement today.
Course Objectives
- Understand trends and forces impacting today's volatile bond market
- Examine 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, spotting arbitrage issues, calculating yield, and advance refundings
- 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
- Hear expert panelists explain common challenges in bond transactions and how to overcome them
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Topics Covered
- 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
- Brokers/Dealers and Underwriters
- Elected Officials
- Government and Nonprofit Finance Officers
- Corporate Trustees
- Legal Counsel
- Underwriters
- Commercial Bankers
- Accountants
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Course Advisor
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Mitchell Smith
Sunnova Energy Corporation
Government Affairs Program Manager
Mitchell Smith is the Senior Director of Government and External Affairs at the Council of Development Finance Agencies. In this role, he manages CDFA’s federal legislative advocacy efforts and facilitates education on federal finance opportunities, ... tax-exempt bonds, and the State Small Business Credit Initiative.
Previously, Mitchell worked for the Ohio Legislative Service Commission on the education research team and served as the committee staffer for the House of Representatives Primary and Secondary Education Committee. There, Mitchell drafted legislation and completed legal research on behalf of the Ohio General Assembly. He also taught American History at Ohio University from 2013-2017.
A native of Bentonville, Arkansas, Mitchell attended the University of Arkansas – Fayetteville, where he received his B.A. in American Studies and Political Science in 2009 and was a punter for the Razorbacks. He went on to complete his M.A. in American History and then relocated to Ohio University to complete a Ph.D. in American History. (More)
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-Agenda
Day 1
| 12:00 PM - 12:15 PM |
Welcome & Overview
Welcome to the course! This session will introduce CDFA, explain how to use the online software, and discuss the framework for the two-day Advanced Bond Finance WebCourse
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| 12:15 PM - 1:00 PM |
Market Update
The training course will begin with an update on market conditions during a time of exceptional volatility in the capital and municipal markets. We will explain the challenges issuers are facing and other forces affecting the bond markets.
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| 1:00 PM - 1:45 PM |
Who Buys Bonds?
An entire world of investors exists outside of the private placement option. This session will look at the variety of buyers participating in the bond markets, including mutual and pension funds, insurance companies, and institutional investors. Speakers will discuss how market forces affect investors’ choices and how to engage investors in a deal.
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| 1:45 PM - 2:00 PM |
Break
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| 2:00 PM - 3:00 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.
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| 3:00 PM - 3:15 PM |
Break
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| 3:15 PM - 4:00 PM |
Refundings
This session explains how advance refundings work and why issuers utilize them. Speakers will cover general prohibitions, limitations, and how the arbitrage rules apply, along with several case studies to illustrate the material.
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| 4:00 PM - 5:00 PM |
Regulator Update
This session will discuss the role of the Internal Revenue Service and the Municipal Securities Rulemaking Board with particular attention paid to regulations that are most critical to issuers in the bond financing process.
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| 5:00 PM |
Adjourn
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Day 2
| 12:00 PM - 12:15 PM |
Revisiting Day 1
The second day of the course will begin with a review of key takeaways and lessons learned from Day 1 and the agenda for the second half of the course.
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| 12:15 PM - 1:45 PM |
Leveraging Resources
An issuing authority can do more than issue bonds. This session will look at creative ways to leverage authorities by developing special loan programs, creating new bond funds, or providing guarantees. Speakers will discuss the essential rules for investing bond proceeds including rating agency requirements and potential arbitrage restrictions.
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| 1:45 PM - 2:30 PM |
Arbitrage, Rebate & Calculating Yield
Understanding arbitrage and rebate is a necessary component of the bond financing process. During this session, basic tax restrictions on arbitrage will be explained, as well as adjustments for guarantee fees and adjustments for payments and swaps. Learn about the rules associated with a rebate, how to calculate yield, and other considerations for fixed-rate and variable-rate issuances.
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| 2:30 PM - 2:45 PM |
Break
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| 2:45 PM - 3:45 PM |
Interest Rate Swaps
The key principles of interest rate swaps are the focus of this session. The speakers will explain common types of swaps, why issuers consider swaps, the risks involved, and pricing and financial benefits. Case studies of various interest rate swap structures will also be presented.
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| 3:45 PM - 4:00 PM |
Break
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| 4:00 PM - 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.
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| 5:00 PM |
Adjourn
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-Location
The Advanced Bond Finance Course will take place on Zoom. The course will meet each day from 12:00-5:00 PM Eastern. Attendees must have access to a computer and the internet to attend the course.
-Registration
This training course qualifies for the CDFA Training Institute's
Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
Scholarships are available to attend this event. Learn more about the
CDFA Scholarship Program,
and submit your application today.
CDFA permits only one person to log in and participate in the course. If multiple people are accessing the course without paying to attend, we will terminate the connection and access. CDFA offers group discounts for organizations that wish to register multiple people.
Register by ____ for Early Bird Rates.
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CDFA Member: $550
Non-Member: $825
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CDFA Member: $600
Non-Member: $875
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