Escrow Structuring
PFMAM is an industry leader in the structuring and restructuring of refunding escrows, lease defeasances, and other matched cash flow portfolios. We have a group of structured products professionals that take a unique, security by security approach to structuring escrow portfolios. Our approach, which we pioneered more than 20 years ago, is designed to provide the optimal portfolio structure at the lowest achievable cost. Most importantly, we take pride in thorough documentation and a “bullet-proof” bidding process designed to comply strictly with the arbitrage regulations and protect our clients from embarrassment -- or worse -- by the IRS or regulatory entities.
Over the years, we have structured and restructured thousands of escrow portfolios, which have produced millions of dollars of benefits to our clients. Depending on the specific circumstances, our scope of services may include:
- Review of permitted defeasance collateral documents
- Analysis of security options based upon relative yield and maturity matches
- Interest rate scenario, sensitivity, and shock analysis
- Analysis of various escrow structures if permitted (first call, par call, maturity, hybrid structures, etc.)
- Incorporating arbitrage strategies related to the potential for blending among actively yield restricted funds
- Competitive security by security purchase and/or liquidations
- Facilitating initial and final subscriptions for United States Treasury Securities, State and Local Government Series (SLGS)
- Independent valuations of forward purchase agreements
- Competitive procurement of forward purchase agreements
- Analysis of restructuring opportunities and sale of call options
- Production of exhaustive documentation related to competitive process including bidding agent certificate and final report