He spends a significant amount of his time representing the lead lenders in large construction financings, including large-scale credit enhancement for government-issued tax-exempt and taxable bonds
, the proceeds of which are used to finance luxury multi-family projects throughout New York City that offer affordable-rate and market-rate housing.
Kate Richardson, chief of staff to state Treasurer Randall Edwards, on Thursday said the state made the decision because it allows the university much more flexibility in how it generates revenue from the arena and because interest rates on taxable bonds
are at historic lows.
They may be better off having investment vehicles such as taxable bonds
in retirement accounts, because interest is still taxed at ordinary income rates, as are retirement distributions.
In the opinion of Deloitte & Touche, cash flow from the escrowed funds and securities will be sufficient to make all required payments of principal, interest and premium on refunded tax-exempt and taxable bonds
Since tax-exempt bonds almost always yield less than comparable taxable bonds
in pretax terms, insurers are faced with the problem of optimally allocating investable funds between taxable and tax-exempt bonds.
pay higher yields than municipals, and since you're not paying current taxes on the difference, they provide a much greater return than municipals.
690 million GO taxable bonds
2009B series three (taxable) bonds maturing Aug.
That's relevant because some of the bonds the state sells will have to be sold as taxable bonds
if the amount of advertising in the arena exceeds certain thresholds.
Both the tax exempt and taxable bonds
must be 100% credit enhanced by a financial institution (generally a bank) with a high credit rating, which acts as the construction lender for the project and supplies a Credit Enhancement Instrument (CEI), including a Letter of Credit ("L/C") to enhance the bonds.
A simple example of a tax-aware investment strategy is the determination of whether, on an after-tax basis, municipal bonds provide greater value than taxable bonds
595 million of taxable bonds
, were refunded on Jan.
0 billion of student loans through tax-exempt and taxable bonds
from 1983 to 1998.