FIN 2240 Advanced Capital Financing

A well managed debt program is an essential part of effective colleges and university financial management. Issuance and effective management of debt require a significant work commitment by the institution's administrative staff. This course will delve into many of the complex issues that financial and business managers in higher education should understand about debt, including long versus short term debt, general obligation versus revenue debt, variable vs. fixed rate debt, credit enhancement, taxable vs. tax-exempt financing options, ongoing compliance for debt outstanding, and IRS arbitrage regulations. You will gain an understanding of bond covenants and their potential effect on your operating flexibility as you work through an analysis of the various types of bond issues, including off balance sheet transactions. You will gain an understanding of the economic decisions surrounding when to issue debt and when to refinance, and decisions about derivatives such as interest rate swaps. Examples of actual transactions will be used in the course. You will leave with an enhanced knowledge of concepts necessary to successfully manage the issuance of debt for your institution.