The par valeue or principal amount of a bond at time of issuance.
The last day of an issuer's Fiscal Period. If a first Fiscal Date is specified in Debt/Size, then reports will be aggregated on each Fiscal Date for the life of the bonds.
A period which determines the time frame for financial reporting, budgeting, accounting and bond structuring. The default Fiscal Period for a Series is entered in Data-General Assumptions. A bond solution based on a Fiscal Period with solution revenue constraints is aggregated by the fiscal period and the fiscal date entered in the Solution Assumptions screen.
A taxable investment provided by banks, securities firms, and insurance companies which earn a fixed or indexed rate of interest over the term. Commonly used for the investment of project funds and reserve funds in a bond financing. The investor usually has the ability to withdraw and deposit funds as needed, subject to predetermined limits-greater flexibility usually lowers the yield. Repos are usually collateralized with government or agency securities for the benefit of the investor.
An agreement in which an issuer invests funds (float balance) between the receipt dates of open market securities and the corresponding escrow disbursement dates. The objective is to reduce 'dead time' and reduce the Escrow Cost.
- DBC Finance can assess the value of these cashflows based on parameters which are set in the Float Contract Parameters of Refund-General Assumptions. The system calculates the present value of the investment income which is the result of the investment of the periodic float balances.
- The value can also be input manually if so desired, as the contract value.
- The up front value of these cashflows is deducted from the cost of the escrow at closing. Using the float contract allows the yield on the escrow receipts to be calculated from the disbursement date instead of the receipt date as the reinvestment of the cashflow is considered to be a security for yield purposes. Also known as a Forward Supply Contract.
The order of depositing and disbursing revenues.
An agreement to deliver open market securities or an investment contract in the future. See Float Contract.
In a refunding, these are funds which are contributed as a source of funds for expenditure in the refunding issue. Examples are debt service funds (bond principal funds and bond interest funds), and debt service reserve funds. These amounts can be used in the refunding issue's reserve fund or deposited in the escrow, and can be invested at a specified rate for Transferred Proceeds or Savings calculations.
- These funds are specified in the main and auxiliary screens of Prior Debt in Refund. Investments which are set up in Debt/Size in an old bond series cannot be automatically recognized as Funds on Hand-they must be described in the Prior Debt screen. Funds on Hand can be valued up front at closing or as cashflow to maturity for Savings and Bond Solution purposes; the prompts are located in the Funds on Hand Auxiliary screen of each Prior Debt component.
The assumed value of a cash flow at a future point in time.