Debt Financing and Management for Public Organizations

Catalog description

This course will focus on the issuance and management of debt by state and local governments as well as nonprofit institutions. The course will serve as an overview of how municipal and nonprofit borrowers access the capital markets, primarily through the issuance of tax-exempt bonds. Students will understand the role of the various participants in the capital markets, including but not limited to the issuer, underwriter, financial advisor, legal counsel, rating agency, insurer and investor. Discussion and assignments will explore historical events in this niche market that have shaped the current approach to debt management for municipal and nonprofit institutions, investor sentiment and regulatory changes. Students will become familiar with related financial analyses including calculations for debt service, credit metrics and financial covenant compliance. The assignments and exams will feature quantitative exercises that require proficiency with accounting concepts, financial math, budgeting models and Microsoft Excel applications.