Well over 60% of fixed-rate municipal bonds issued today are callable prior to maturity and most come with high premium coupons. Despite the fact that these bonds are likely to be refunded prior to their first call date, traditional bond solution software completely ignores this in the calculation of debt service and so-called True Interest Cost (TIC). SmartModels™ True Cost Solutions is the only bond structuring and solution software that uses the issuer’s actual refunding criteria to determine first refunding adjusted debt service (RADS), and ultimately the issuer’s true capital cost, Refunding Adjusted Yield (RAY).
True Cost Solutions is the only municipal bond structuring solution that:
If you want to understand the real-world cost of capital for you or your clients and up the game in municipal bond structuring, get True Cost Solutions.