000			01553nab a2200229 c 4500
999			_c145343 _d145343
003			ES-MaIEF
005			20220208122655.0
007			ta
008			220208t2021 us ||||| |||| 00| 0|eng d
040			_aES-MaIEF _bspa _cES-MaIEF
100	1		_969540 _aKalotay, Andrew
245		0	_aTaxable advance refundings _ba critical examination _c Andrew Kalotay
260			_c2021
500			_aResumen.
520			_aThe Tax Cuts and Jobs Act of 2017 (TCJA) eliminated advance refundings with tax-exempt bonds but it is silent on advance refundings with taxable bonds. In today’s low interest rate environment, such taxable refundings have become a trend. Although these transactions generate large savings, the odds favor waiting until the call date and then refunding with tax-exempt bonds. Unless interest rates rise significantly, waiting would result in much greater savings. The interest rate risk can be mitigated by issuing callable taxable bonds, which afford eventual refunding with tax-exempt bonds. However, this strategy does not improve the economics significantly—the higher coupon of the callable bonds reduces the savings until they are called. The typical savings from taxable refundings extract only about 70% of the forfeited option value of the refunded bonds.
650		4	_aBONOS _933462
650		4	_aIMPUESTOS _947460
650		4	_aAHORRO _99340
650		4	_aESTADOS UNIDOS _942888
773	0		_9166424 _oOP 235/2021/1 _tJournal of Taxation of Investments _w(IEF)51921 _x 0747-9115 _gv. 39, n. 1, Fall 2021, p. 49-60
942			_cART