Issuers Save Waiting for Call Date.

Advance refunding tax-exempt debt with taxable bonds prior to the call date does not always pay off, a new research paper shows. According to the paper, MSBA saved $121.63 million by advance refunding the 2011B Bonds with its taxable 2019 bonds. The researchers analyzed 14 transactions between 2018 and 2020 and determined that the taxpayers would have come out half a billion ahead had the issuer waited out the call date instead of refunding their exempt bonds with taxable paper. [Extracted from the article]