Operations Support Services (OSS) frees the issuer from the expense of calculations imposed upon it by a complex regulatory and tax framework. OSS provides “plug-in” services that allow agencies and other institutions to satisfy their contractual and regulatory obligations simply and cost effectively. The services include arbitrage rebate calculations, redemption instructions, mortgage yield compliance reports, accounting, mortgage administration, and cash flow projections. The firm’s calculations are based on rigorous models of every indenture and transaction as well as straight-through processing of data in the supply chain.
The OSS group is expert at organizing and maintaining the many relationships that knit individual bond issues together. OSS maintains the entire history of each client’s portfolio. This allows OSS to determine a client’s contract and tax compliance obligations. For example, OSS records the specific bonds under each resolution that refunded any other bonds under other resolutions. Such detail is necessary, as it turns out, for determining how the issuer must use recoveries of principal to redeem bonds and structure refundings. Similarly OSS maintains detailed records about the purchase, sale, and terms of every investment under the resolution subject to arbitrage rebate. This allows OSS to compute the rebate liability for every tax plan in each resolution, under various sets of rules set down by different tax counsel across the country. To learn more about cfX Operating Support Services, contact us.