Arbitrage Rebate 101
Michael Steinbrook, Director, and Lesley Murphy, Director, PFM Asset Management LLC (PFMAM)
Even in the best of times, issuers of tax-exempt or tax-advantaged debt must consider a myriad of variables both before and after issuance. Rising interest rates and economic volatility only add to the challenge and complexity, particularly when it comes time to invest the proceeds. One of those challenges is navigating complex arbitrage rebate regulations. However, careful study of and adherence to these regulations may benefit the savvy issuer, especially in today’s market environment when positive arbitrage is once again in play. If your agency has debt outstanding or is planning an upcoming issuance, click here for a refresher on what you need to know about arbitrage rebate and how these regulations impact your agency.
Michael (Mike) Steinbrook is the Director of PFM Asset Management LLC (PFMAM)’s Arbitrage and Tax Compliance Group. In this role, Mike is responsible for business development and client management efforts, staff development, internal and external training, quality control and developing the methodologies, and approaches and strategies utilized by the group. Mike has prepared and reviewed thousands of analyses, including arbitrage rebate and yield restriction calculations, spending exception analyses, liability optimization strategies, and other arbitrage related services. He also assists issuers in the development and implementation of post-issuance compliance policies and procedures and investment strategies for tax-exempt bond proceeds and is a frequent speaker at various industry conferences.
Lesley Murphy is currently a Director at PFMAM, where she is responsible for the firm’s sales and business development efforts in the growing California market. Lesley works to introduce both new and existing clients to the full scope of products and services available through PFMAM. In this role, Lesley draws upon her 14 years of providing both fixed income and multi-asset class investment solutions to government and non-profit clients throughout the state. Lesley is also a frequent speaker at industry conferences. Prior to joining PFMAM, Lesley was employed as an analyst within the financial advisory group of an investment banking firm in Boston, where she assisted clients in the issuance of municipal debt. When not thinking about the financial markets, Lesley can be found jogging, hiking, and dining in the greater Bay Area.
