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Wednesdays
Day
#1 - For Classes Beginning on Mondays
Introduction: Philosophy behind design of Mun-Ease. Overview of database
architecture and system conventions. Tips for new users. (8:30-9:00)
Lesson #1: Enter a fixed rate bond issue. Calculate
the true interest cost (T.I.C.) and arbitrage yield limit. Generate
an accreted value table for the zero coupon maturity. View a
statistical summary of the bond issue. Generate a debt service
schedule for a bond issue with no calls and one with called
maturities. Graph the bond issue. Demonstrate price-to-worst
/ yield-to-worst features. Enter a bond issue with zero coupon
bonds (CABs, convertible CABs, term CABs, premium CABs). Enter
a Build America Bond. (9:00-12:00)
Lunch
- 12:00 - 1:00
Lesson #2: Create a variable rate bond issue.
Enter weekly resets and calculate the interest payment from
those resets. Demonstrate the what-if features for future interest
payments. Calculate the T.I.C. and the arbitrage yield limit.
Enter a fixed rate note. Enter a draw-down loan. Enter a note
with commercial paper rollovers. Merge a note with a bond issue.
(1:00-2:30)
Lesson #3: Discuss sizing rules and input
options. Size a bond issue with level debt service. Size an
issue with debt service modeled after user-defined revenue stream.
Size a note. Size a bifurcated new-money bond issue. (2:30-3:30)
Lesson #4: Stand-alone reports - Generate a
combined debt service, combined indebtedness, and new issue
impact reports. Discuss GASB 34 and its effect on reporting.
Generate a combined debt service schedule on an accrual basis.
Generate OID/OIP amortization reports. Generate amortization
reports for other issuance costs. Generate reports for annual
CAFR and long-term debt. (3:30 - 4:30)
Lesson #5: Demonstrate the bond calculator. Discuss
interest computations (MSRB vs. SIA rules, CABs vs. CAVs, odd
coupons, and other calculation issues). (4:30-5:00)
Day #2 - For Classes Beginning on Mondays
Lesson #6: Part I: Calculate the arbitrage yield limit
for a (1) plain par bond, (2) bond with deep-discount term maturities,
(3) bond with yield-to-call maturities, and (4) variable rate
bond issue. For the variable rate bond issue, calculate both
the yield for a 5-year period and separate yields for each bond
year within the five-year period. (8:30-9:00)
Lesson
#6: Part II: Enter rebate transactions for a simplified
example. Perform future value calculations via nonpurpose investments
and purpose expenditures. Perform alternative spend-down penalty
calculation. Perform I.R.R. calculations for all investments
in a bond issue and for individual investments. (9:00-10:00)
Lesson #6:
Part III: Enter rebate payments and inflation-adjusted computation
credits. Perform spend-down 18-month and 24-month spend-down
tests. Discuss and demonstrate temporary period yield restrictions
and calculation of yield-reduction payments. Generate related
reports. (10:00-10:30)
Lesson #6-Part IV: Commingled bond proceeds.
Discussion of calculation alternatives. Review two case studies.
Work paper organization. (10:30-11:00)
Lesson #6-Part
V: Comprehensive arbitrage example. Perform arbitrage calculations
individual funds within a bond issue (debt service reserve,
capitalized interest, construction fund) and for all funds within
bond issue. (11:00-11:30)
Lesson #6-Part VI: Arbitrage What-if Calculations.
Optimize a portfolio of investments to meet a construction draw
schedule. Calculate I.R.R. of portfolio and perform rebate calculations.
Discuss how calculations can be used in connection with other
modules. (11:30-12:00)
Lunch -
12:00 - 1:00
Lesson #7-Part I: Refunding calculations -
Overview of refunding process. Discuss types of refundings (current,
advance, and crossover refundings). Size a current refunding.
Analyze an refunding proposal from an underwriter. (1:00-2:30)
Lesson #7-Part II: Refunding calculations -
Advance and crossover refundings. Perform advance refundings
with SLGS investments when (a) there is positive arbitrage,
and (b) negative arbitrage. . Discusss alternatives for handling
underwater escrows. Alternative refunding structures (upfront
savings, backloaded savings, escalating savings). Enter an advance
refunding with open market investments (2:45-5:00)
Day #3 - For Classes Beginning on Mondays
Lesson #7-Part IV: Refunding calculations -
Wrap-around escrows. Transferred proceeds / transferred proceeds
penalty calculations. Yield burning. Scanning your database
for refunding candidates. Bifurcated refundings. Analyze the
cost-effectiveness of a swap agreement. (9:00-10:00)
Lesson #8: Project Allocations - Perform allocations
on a maturity-by-maturity basis and on a gross debt service
basis. Discuss pros and cons of each method. Generate reports
for both methods. Merge allocations when the organization uses
both methods. Generate reports of the merged calculations. Generate
reports of authorizations and expenditures. Discuss private
use rules and generate reports that prove or disprove compliance
with those rules. (10:00-11:30)
Lesson #9: Miscellaneous
topics: Local area networks. Crystal Reports, Databases (EDB
vs. SQL Server) (11:30-12:00).
Back to Previous
Page | Mondays
Day
#1 - For Classes Beginning on Wednesdays
Introduction:
Philosophy behind design of Mun-Ease. Overview of database architecture
and system conventions. Tips for new users. (1:00-1:30)
Lesson #1: Enter a fixed rate bond issue. Calculate
the true interest cost (T.I.C.) and arbitrage yield limit. Generate
an accreted value table for the zero coupon maturity. View a
statistical summary of the bond issue. Generate a debt service
schedule for a bond issue with no calls and one with called
maturities. Graph the bond issue. Demonstrate price-to-worst
/ yield-to-worst features. Enter a bond issue with zero coupon
bonds (CABs, convertible CABs, term CABs, premium CABs). Enter
a Build America Bond. (1:30-5:00)
Day #2 - For Classes Beginning on Wednesdays
Lesson #2: Create a variable rate bond issue.
Enter weekly resets and calculate the interest payment from
those resets. Demonstrate the what-if features for future interest
payments. Calculate the T.I.C. and the arbitrage yield limit.
Enter a fixed rate note. Enter a draw-down loan. Enter a note
with commercial paper rollovers. Merge a note with a bond issue.
(8:30-10:00)
Lesson #3: Discuss sizing rules and input
options. Size a bond issue with level debt service. Size an
issue with debt service modeled after user-defined revenue stream.
Size a note. Size a bifurcated new-money issue. (10:00-11:00)
Lesson #4: Stand-alone reports - Generate a
combined debt service, combined indebtedness, and new issue
impact reports. Discuss GASB 34 and its effect on reporting.
Generate a combined debt service schedule on an accrual basis.
Generate OID/OIP amortization reports. Generate amortization
reports for other issuance costs. Generate reports for annual
CAFR and long-term debt. (11:00 - 12:00)
Lunch
- 12:00 - 1:00
Lesson #5: Demonstrate the bond calculator. Discuss Interest
computations (MSRB vs. SIA rules, CABs vs. CAVs, odd coupons,
and other calculation issues). (1:00-1:30)
Lesson #6: Part I: Calculate the
arbitrage yield limit for a (1) a plain par bond, (2) bond with
deep-discount term maturities, (3) bond with yield-to-call maturities,
and (4) variable rate bond issue. For the variable rate bond
issue, calculate both the yield for a 5-year period and separate
yields for each bond year within the five-year period. (1:30-2:00)
Lesson
#6: Part II: Enter rebate transactions for a simplified
example. Perform future value calculations via nonpurpose investments
and purpose expenditures. Perform alternative spend-down penalty
calculation. Perform I.R.R. calculations for all investments
in a bond issue and for individual investments. (2:00-3:00)
Lesson #6:
Part III: Enter rebate payments and inflation-adjusted computation
credits. Perform spend-down 18-month and 24-month spend-down
tests. Discuss and demonstrate temporary period yield restrictions
and calculation of yield-reduction payments. Generate related
reports. (3:00-3:30)
Lesson #6-Part IV: Commingled bond proceeds.
Discussion of calculation alternatives. Review two case studies.
Work paper organization. (3:30-4:00)
Lesson #6-Part
V: Comprehensive arbitrage example. Perform arbitrage calculations
individual funds within a bond issue (debt service reserve,
capitalized interest, construction fund) and for all funds within
bond issue. (4:00-4:30)
Lesson #6-Part VI: Arbitrage What-if Calculations.
Optimize a portfolio of investments to meet a construction draw
schedule. Calculate I.R.R. of portfolio and perform rebate calculations.
Discuss how calculations can be used in connection with other
modules. (4:30-5:00)
Day #3 - For Classes Beginning on Wednesdays
Lesson
#7-Part I: Refunding calculations
- Overview of refunding process. Discuss types of refundings
(current, advance, and crossover refundings). Size a current
refunding. Analyze an refunding proposal from an underwriter.
(9:00-10:00)
Lesson
#7-Part II: Refunding calculations - Advance and crossover
refundings. Perform advance refundings with SLGS investments
when (a) there is positive arbitrage, and (b) negative arbitrage.
. Discusss alternatives for handling underwater escrows. Alternative
refunding structures (upfront savings, backloaded savings, escalating
savings). Enter an advance refunding with open market investments.
(10:00-12:00)
Lunch
- 12:00 - 1:00
Lesson
#7-Part IV: Refunding calculations - Wrap-around escrows.
Transferred proceeds / transferred proceeds penalty calculations.
Yield burning. Scanning your database for refunding candidates.
Bifurcated refundings. Analyze the cost-effectiveness of a swap
agreement. (1:00-2:30)
Lesson #8: Project Allocations - Perform allocations
on a maturity-by-maturity basis and on a gross debt service
basis. Discuss pros and cons of each method. Generate reports
for both methods. Merge allocations when the organization uses
both methods. Generate reports of the merged calculations. Generate
reports of authorizations and expenditures. Discuss private
use rules and generate reports that prove or disprove compliance
with those rules. (2:30-4:30)
Lesson #9: Miscellaneous
topics: Local area networks. Crystal Reports, Databases (EDB
vs. SQL Server) (4:30-5:00).
