The growth of complex tax-exempt transactions, such as pool transactions, variable-rate programs, and housing deals, as well as the increasing number of structured finance transactions, poses an ever increasing challenge to corporate trustees. At the same time, congressional and White House interest in new tax-exempt housing programs suggests we may see a new wave of these complex financings. The combination of these factors may put added strain on corporate trustee departments and force them to reevaluate their operations.

For years, MBIA Corp. has worked with the American Bankers Association's Corporate Trust Committee in a cooperative effort to draw attention to the problems that exist in trustee administration of structured and other complex transactions in the tax-exempt area. While the message from MBIA has focused on particular concerns in trust administration, the theme remains consistent: Senior corporate trust executives must recognize the complexity of debt financing and prepare their organizations to address the challenges in today's marketplace. In doing so, this will benefit not only the trustee bank, but all market participants - bondholders, rating agencies, credit enhancers, and secondary market traders.

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