Arbitrage Rebate is the excess funds in interest earnings bond issuers of tax-exempt bonds earn through investing bond proceeds in higher-yielding taxable investments. Arbitrage must be “rebated” back to the Federal Government. The regulations are outlined in detail under Section 148 of the Internal Revenue Code of 1986 and in Section 1.148 of the U.S. Treasury Regulations and are often referred to as the “Arbitrage Regulations”. The arbitrage calculations are required to be performed at least once every five (5) years for each tax-exempt bond issue. The arbitrage calculations process can be complex and may require significant time and resources to manage, perform and report the process.
D2 provides arbitrage rebate calculation services and bond compliance services to assist issuers and make the process less daunting. Our experience and professionals are here to assist with all facets of the arbitrage and compliance services allowing issuer staff to focus on important organizational responsibilities and leaving the complex world of arbitrage rebate to D2.
Arbitrage Rebate and Yield Restriction Calculations, D2 provides an Arbitrage Rebate and Yield Restriction calculation report. The report includes fixed and variable, general obligation debt, revenue bonds, commercial paper, leases, or draw-down loans.
Spending Exception Calculations, In high-interest rate and earnings environment, spending exceptions can be a valuable tool for issuers to utilize on their bonds. D2 performs spending exception arbitrage calculations reports for issuers as necessary.
Form 8038-T & 8038-R, D2 assists clients with the filing of Forms 8038-T and 8038-R to submit arbitrage payments to the Federal Government or request a refund of an overpayment made to the Federal Government.
Post-Issuance Monitoring & Consulting, once the bonds are issued, it is easy to forget all the detailed reporting required to remain in compliance. D2 makes this easy for clients by maintaining the important compliance dates and proper documentation for each tax-exempt bond issue for our clients. D2 takes the worry and guesswork out of the post-issuance monitoring. D2 provides timely and accurate notifications, consulting and records in accordance with the Arbitrage Regulations. D2 works with the issuer and their team of advisors, legal counsel, trustees, and auditors.