In 1986 congress introduced the Arbitrage regulations governing earnings on tax-exempt bond proceeds. A Charlotte, NC based institutional fixed income investment firm wanted to understand how these new regulations affected the portfolios of their NFP and municipal clients. The firm retained a nationally recognized bond counsel to gain an in-depth understanding of the arbitrage regulations. That group, working with their analysts, devised portfolio investment strategies that may offer clients opportunities to increase the retained earnings derived from reinvestment of bond proceeds. These increased earnings may translate into enhanced after-market efficiencies in the clients’ capital structures. The results may include improved ratings, reduced demand on general fund revenues and increased debt service capacity.

For nearly two decades the Charlotte based firm, now called the Arbitrage Management Group, AMG, have been specializing in strategies to maximize reinvestment earnings of Tax-exempt Bond Proceeds. AMG representatives routinely interact with Trustees, Fiscal Agents, Bond Counsels and Financial Advisors. Over the course of its history AMG has assisted clients with the reinvestment of more than $1 billion of bond proceeds.

In 2004 AMG joined Sterne Agee & Leach. Founded in 1901, Sterne Agee has been providing investors with high-quality investment opportunities for over a century. During the early years, the founders of the firm prominently established themselves in the financial services industry in the southeastern United States. Today, the firm has expanded to serve all regions of the country. Sterne Agee now holds over $9.4 billion in client assets and serves over 80,000 clients. Employing over 480 professionals, the firm operates five subsidiaries which provide a total investment solution for our clients.