Debt Management: General Review (Fundamentals of Debt Series) - October 24, 2013    

Group Internet-based course
Prerequisites: None
Course level: Basic 
CPE credits: 2

Time: 2:00 – 4:00 p.m. (Eastern)


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Who Will Benefit

Finance staff, new chief financial officers, and those who are responsible for their entity’s debt management.

Participants will be provided with the tools and techniques needed to understand issuing and managing their jurisdiction’s debt. 

Series Topics

Debt Management: General Review

This session will provide participants with an overview of debt capacity standards, choosing and using financial advisors, the importance of developing a debt management policy, and how debt issuance plays into capital improvement planning.

Types of Debt Instruments and Understanding Refundings

An overview of the types of debt instruments available (tax-exempt/taxable; fixed/variable rate), pledging responsibilities, IRS regulations, and the use of market data will be addressed. Additionally, the course will review the opportunities for refunding, and how to determine when refunding makes the most economic sense.

Arbitrage Rebate:  Know Your Responsibilities

Calculating the arbitrage rebate, pursuant to IRS rules, is an important aspect of debt management. This session will address how to compute arbitrage, utilizing outside professionals for arbitrage calculations, and reporting guidelines for meeting current IRS regulations.

Competitive vs. Negotiated Sales

GFOA best practices encourage governments to carefully consider the method of sale for their transaction. This session will highlight GFOA best practices and provide participants with an overview of the differences between competitive and negotiated sales, offer tools to help determine which type of sale is best for their transaction, and will emphasize the issuer’s responsibilities with each type of sale.

Credit Ratings and Credit Enhancements

It is essential that the finance office understand the credit rating process. This session will discuss the relationship between issuers and rating agencies and give tips on making the best rating agency presentations. The session will also discuss the use of credit enhancements.

The Bond Issuer's Disclosure Responsibilities

Issuers have numerous disclosure responsibilities related to their bond transaction. This session will cover both the primary disclosure responsibilities associated with preparing official statements as well as ongoing continuing disclosure responsibilities. An up-to-date overview of SEC regulations in this area, as well as information about the Electronic Municipal Market Access system will also be highlighted.

Seminar Objectives

  • Develop a thorough understanding of the various debt instruments available to state and local governments
  • Develop effective policy guidelines for debt management
  • Bring awareness to using and hiring outside finance professionals
  • Understand issuer disclosure responsibilities 
  • Get the most out of rating agency presentations

Recommended Reading

  • Debt Issuance and Management: A Guide for Smaller Governments
  • An Elected Official’s Guide: Debt Issuance, second edition
  • A Guide for Preparing a Debt Policy
  • Tax-Exempt Financing: A Primer, revised edition
  • Benchmarking and Measuring Debt Capacity (GFOA Budgeting Series, Vol. 1)


Register online