Guaranteed rate locks in positive arbitrage assuring maximum retainable interest. All coupon payments are immediately reinvested at the coupon rate. The entity reviews all bids, and approves the winner before award. All draws are at the discretion of the entity. Confirmations and transaction reports are sent directly to the entity.
Positive spread is locked in for the life of the flex, net of fees.
Fee is paid by the winning bidder. There is no direct cost to the entity. Flex repos are an easy, widely used investment choice for municipal bond proceeds. The governmental entity purchasing a flexible repurchase agreement will receive monthly statements from the provider showing the current balance, activity, and accrued interest on the outstanding balance. In addition, the custodian performs a daily market valuation of the collateral and provides a monthly report to the governmental entity detailing the collateral and it current market value.