Public borrowing for private organizations costs and structure of tax - exempt debt through conduit issuers Todd L. Ely and Thad D. Calabrese
By: Ely, Todd L
.
Contributor(s): Calabrese, Thad.
Material type: 
ArticlePublisher: 2017Subject(s): SERVICIOS PUBLICOS | COLABORACIÓN PÚBLICO - PRIVADA | IMPUESTOS | EXENCIONES TRIBUTARIAS
In:
Public Budgeting & Finance ; v. 37, n. 1, Spring 2017, p. 3-25Summary: Conduits are public organizations that issue debt on behalf of third-party borrowers, both government and private. Additional transaction costs from using conduits offset lower interest costs. We find debt issuance costs 25 percent higher for private organizations than the broader municipal debt market, primarily from fees charged by conduits. Further, existing issuance cost reporting focuses on upfront costs, whichfail to capture the significance of annual conduit fees. Also, private borrowers havedebt structures that keep more principal outstanding over longer periods of time.Despite additional costs, conduits still provide these private borrowers with substantial interest cost savings.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | OP 1716/2017/1-1 (Browse shelf) | Available | OP 1716/2017/1-1 |
Disponible también en línea a través de la Biblioteca del Instituto de Estudios Fiscales. Resumen. Conclusión. Bibliografía.
Conduits are public organizations that issue debt on behalf of third-party borrowers, both government and private. Additional transaction costs from using conduits offset lower interest costs. We find debt issuance costs 25 percent higher for private organizations than the broader municipal debt market, primarily from fees charged by conduits. Further, existing issuance cost reporting focuses on upfront costs, whichfail to capture the significance of annual conduit fees. Also, private borrowers havedebt structures that keep more principal outstanding over longer periods of time.Despite additional costs, conduits still provide these private borrowers with substantial interest cost savings.
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