Flex Repo Service
A flexible repurchase agreement is an investment option that is used frequently for the investment of tax-exempt bond proceeds that are subject to the federal arbitrage rebate requirements. Click here to download a detail description of a Flex Repo.
First Southwest's flex repo service can provide you with:
Consultation
First Southwest’s role is to explain the product in the context of other available investment alternatives and to fulfill strict legal disclosure requirements associated with this product. Our Investment Management Group can interface on behalf of our clients with the Arbitrage Rebate Compliance Group to assure compliance with tax laws.
Bidding, Awarding and Closing Process
First Southwest, together with the First Southwest Company Structured Products Desk, will act as a bidding agent, guiding the client through the entire flex repo bidding process. This includes development of the bid specifications, analyzing the bids received, reviewing the legal documents and assisting in the ongoing operations.
Flex Reporting
Once the flex repo has been settled, First Southwest will review collateral reports, track flex repo balances and interest accruals, and provide accounting entries as part of a monthly flex repo reporting package.
There is no direct charge to the client for
this optional bidding agent service, but typically a five basis point fee
will be paid by the winning bidder to First Southwest Company upon
settlement of the trade. All fees paid to First Southwest by the provider
will be disclosed to the
client.