Play Recording

Untangling the Discount Dilemma: What You Need to Know About Market Discount

The Bond Buyer

Webinar | December.12.2023 | 2pm - 3pm (Eastern Standard Time)

Recording Available

Unlike original issue discount, market discount on tax-exempt bonds results in taxable income. The steady rise in interest rates has caused many bonds, even those originally issued with a substantial premium, to trade with taxable market discount. The impact of market discount on secondary market pricing and liquidity can be significant. How is this dynamic driving issuer and investor decision-making about bond structures, coupons and the secondary market for tax-exempt bonds?

In this webinar industry insiders dive into the issues surrounding market discount and share perspectives on how it affects bond trading dynamics and market behavior.

Key discussion topics include:

The de minimus tax rule and other tax aspects of market discount, explained.
How market discount is impacting the primary and secondary markets.
Potential solutions for bonds with market discount.

Speakers

Charles C. Cardall Partner, Tax

San Francisco

See my bio

D:+1 415 773 5449
E: [email protected]

Practice:

Finance Sector
Tax

vCard

See full bio

Charles C. Cardall Partner

San Francisco

He also has legal experience relating to both charter schools and the federal income tax classification of governmental and quasi-governmental entities. He has consulted on thousands of tax-exempt, build America and tax credit bond issues and has developed deep knowledge in almost every tax aspect of municipal finance. Private activity bonds for multifamily housing, solid waste, charter schools and independent schools are areas of particular focus in his practice, as are higher education, short-term and long-term working capital and the various forms of pooled financings. Chas also has advised numerous clients experiencing financial distress or bankruptcy in tax matters relating to their municipal bonds. Representative active clients include the State of California, the University of California, the Bay Area Toll Authority, and Charter School Capital.

As a legal and policy advocate, Chas represents both government and non-government clients in federal tax rulemaking matters and in IRS proceedings, including the various types of tax-exempt bond audits, voluntary compliance (VCAP) requests and requests for private letter rulings. He has successfully closed IRS examinations relating to solid waste, water and wastewater, working capital, healthcare, pooled, multifamily housing, and industrial development bond financings. He has obtained multiple private letter rulings and technical advice memoranda and has been integrally involved in numerous regulation and legislative projects. He has found that a close working relationship with IRS and Treasury Department personnel often is critical to obtaining good results for clients.

Christine Reynolds Partner, Public Finance, Revenue Bond Financing

Portland; Seattle

See my bio

D:+1 503 943 4821
E: [email protected]

Practice:

Finance Sector
Public Finance
Revenue Bond Financing
Transportation Finance
Infrastructure
Health Care Finance
General Obligation Bonds

vCard

See full bio

Christine Reynolds Partner

Portland; Seattle

Christine has more than two decades of experience in public infrastructure finance, advising on both traditional bond financings and innovative funding structures. She serves as a Vice-Chair of the Public Finance Group and on the leadership team for the Impact Finance Group.

Christine’s experience includes various general obligation and revenue bond financings, including those relating to transportation, education, healthcare, water and wastewater, economic development, urban renewal, public power and other infrastructure financings.

She has extensive knowledge and experience with disclosure requirements for municipal issuers under federal securities laws, including both initial and continuing disclosure issues, material events disclosure, public offerings, private placements and other matters.

Christine is a frequent speaker at conferences and seminars given by trade and professional organizations within the municipal finance industry, including serving as Chair for The Bond Buyer's 2022 Infrastructure Conference.

Related Areas

Public Finance