3 Other Munies Flashcards
Municipal Notes
Term
< 3 years
Municipal Notes
TAN
RAN
BAN
CLN
GAN
Tax Anticipation Notes
finance ops in anticipation of future taxes
Municipal Notes
TAN
RAN
BAN
CLN
GAN
Revenue Anticipation Notes
finance ops in anticipation of future revenue
TRAN - Combo of TAN & RAN
Municipal Notes
TAN
RAN
BAN
CLN
GAN
Bond Anticipation Notes
eventually converted to long-term financing/bond
Municipal Notes
TAN
RAN
BAN
CLN
GAN
Construction Loan Notes
housing projects
Municipal Notes
TAN
RAN
BAN
CLN
GAN
Grant Anticipation Note
expectation of recv grant from Fed Govt
Municipal Notes
Tax Exempt Commerical Paper
used instead of TAN & BAN
matures 30, 60, 90 days
Municipal Notes
VRDO
Variable Rate Debt Obgliation
fluctuating interest
put w/ an option
Municipal Notes
VRDO
reset bonds
Variable Rate Debt Obgliation
fluctuating interest price remains stable @ par
coupon resets to mkt rate of interest every 6 monts
Municipal Notes
ARS
Auction Rate Securities
hospitals, universiites
long-term var rate tied to short-term interest
aution - lowest bid sold at par establish new/reset/clearing rate
failed auction, no reset
State & Local Govt Securitites (SLGS)
US Govt sec issued to municipal in connection to
pre-refunding
call early when int low
Build America Bonds (BABs)
Economic Recovery & Reinvestment Act 2009
taxable
help rebuild roads, sewers
income tax credit to 35% interest can be carried forward
Direct Payment - issuer gets $ from Fed Govt = 35% int paid
Build America Bonds (BABs)
Direct Payment
issuer gets $ from Fed Govt = 35% int paid
Build America Bonds (BABs)
Tax Credit
investor gets 35% tax credit on interest
