Tax exempt debt issuers are subject to a long list of Internal Revenue Service (IRS) requirements that dictate how and when they can invest and spend down their bond proceeds. PMA Securities' Bond Proceeds Management Program seeks to fulfill these obligations with minimal hassle.
PMA Securities' Bond Proceeds Management Program is a comprehensive service that facilitates:
- Establishing a scheduled flow of funds
- Optimizing investment opportunities
- Covering projected expenses
- Providing administrative efficiency
PMA Securities' Bond Proceeds Management Program seeks to provide public entities significant benefits in critical areas of investment, arbitrage and reporting.
- PMA competitively bids client investments across its expansive network of banks and dealers to obtain optimal pricing.
- PMA’s local bank participation program allows local institutions to participate in the process.
ARBITRAGE AND REPORTING
PMA’s specialized monthly credit reports provide:
- Reliable interest earnings projections
- Arbitrage spend down status
- Spending exception tests
- Monthly updates on potential arbitrage payments
- Comprehensive portfolio reporting
- Coordinates third-party arbitrage calculation, if needed
The role of PMA Securities' Bond Proceeds Management Program is to maximize earned interest income while complying with the IRS Rules and Regulations.