Arbitrage Rebate Compliance Services RFR Questions and Answers.pdf
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- Attached to
- RFR for Arbitrage Rebate Compliance Services
- Solicitation number
- BD-21-1211-MSBA-MASS-55580
- Issued by
- Massachusetts
About this file
This document is a Questions and Answers summary related to a Request for Responses (RFR) issued by the Massachusetts School Building Authority (MSBA) to Provide Arbitrage Rebate Compliance Services. The MSBA is seeking proposals for these services due to market volatility and changes in the public finance marketplace. The current arbitrage calculation service provider is AMTEC. The MSBA's bond proceeds are primarily invested in US Treasury Securities, SLGS, and one GIC maturing in 2022, and are held by trustee bank BNY Mellon. The MSBA has 13 series of outstanding bonds that require rebate calculations, with the last calculation date of June 30, 2020. An additional series of new money bonds will bring the total to 14 series.
The document also notes that the MSBA has a $1.7 million arbitrage rebate liability related to its 2015 Series D Bonds. The MSBA does not commingle bond proceeds with any other bond proceeds or funds. Rebate calculations have been prepared for all series of outstanding bonds that require such calculations, on at least an annual basis.
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MSBA-RFR-ARBITRAGE-2020 – Questions and Answers
QUESTIONS AND ANSWERS
Massachusetts School Building Authority
RFR File Name/Title: Request for Responses (RFR) to Provide Arbitrage Rebate
Compliance Services
RFR File Number: MSBA-RFR-ARBITRAGE-2020
RFR Contact Person: Siobhan Tolman, Procurement & Contracts Specialist
Date: October 21, 2020
The MSBA received (7) questions regarding the RFR to Provide Professional Development
Training.
1. Question: Who is the current arbitrage calculation service provider?
Answer: AMTEC.
2. Question: Why is MSBA requesting proposals?
Answer: Given market volatility and significant changes in the public finance marketplace, the Authority has decided it is in its best interests to re-bid these services at this time.
3. Question: How are the bond proceeds currently invested?
Answer: Primarily in US Treasury Securities, SLGS, and one GIC maturing in 2022.
4. Question: What bond series has the $1.7 million arbitrage liability noted in the financial statements?
Answer: The arbitrage rebate liability is related to the MSBA’s 2015 Series D Bonds.
5. Question: Are the funds held by a trustee bank?
Answer: Yes, BNY Mellon.
6. Question: Please describe any commingling of bond proceeds with other bond proceeds or other funds.
Answer: The Authority does not commingle bond proceeds with any other bond proceeds or funds.
7. Question: Has any rebate calculations been prepared for any of the outstanding bonds? If so, how many bond issues will need rebate calculations and when was the last calculation date for each bond series?
MSBA-RFR-ARBITRAGE-2020 – Questions and Answers
Answer: Yes, rebate calculations are and have been prepared for all series of outstanding bonds (that require rebate calculations) at least annually. The last calculation date for each bonds series was June 30, 2020. The Authority currently has 13 series of bonds that require rebate calculations. Additionally, the Authority issued a series of new money bonds, which will bring the total to 14 series of bonds.
File details come from the government source that posted it. Updated .