A variable rate demand obligation (VRDO) is a municipal security for which the interest
rate resets on a periodic basis and holders are able to liquidate their security through
a “put” or “tender” feature, at par. Information on EMMA about a VRDO is provided by the
MSRB’s Short-term Obligation Rate Transparency (SHORT) System, which began collecting
such information on April 1, 2009. Information about a VRDO generally is collected by
no later than 6:30 P.M. Eastern Time on the day that an interest rate is reset. Read
more about variable rate demand obligations in the MSRB Education Center.
The following items are disclosed in connection with an interest rate reset in a
VRDO, depending on your current view.
Date and Time of Interest Rate Reset
- shows the time and date that Remarketing Agent determined the interest rate.
CUSIP - shows the CUSIP-9 number
for the VRDO. Data is not available for a VRDO that does not have a CUSIP-9 number.
Remarketing Agent - shows the
dealer that is responsible for reselling to new investors securities that have been
tendered for purchase by an investor. The Remarketing Agent typically also determines
the interest rate for the security at each interest rate reset.
Length of the Interest Rate Reset Period
- shows the number of calendar days that the interest rate is applicable.
Interest Rate - shows the interest
rate, expressed as a percentage. This is the interest rate of the VRDO for the duration of the applicable Interest Rate Reset Period.
Effective Date of Interest Rate - shows effective date that the interest rate reset is applicable.
Rate Type - shows how the interest
rate was determined on the specific interest rate reset date. Rate type categories
are as follows:
- (M) Maximum Rate – indicates that the interest
rate is set at the highest rate allowable as specified in official documents for
- (F) Set by Formula – indicates that the interest
rate was set pursuant to a formula specified in official documents for the VRDO.
- (R) Set by Remarketing Agent – indicates that
the interest rate was determined by the Remarketing Agent.
Length of Notification Period
- shows the number of calendar days that may elapse, as specified in official documents
for the VRDO, between a holder tendering its security
and a Liquidity Facility purchasing the tendered security in the event that the
Remarketing Agent is unable to remarket the tendered security.
Minimum Denomination - shows
the minimum principal amount permissible for transactions in the security as specified
under the auction rate security program documents.
Maximum Rate – shows, if specified in official documents for the VRDO, the highest interest rate that could be set. If a maximum rate is specified in the program documents, but such interest rate is the result of a formula that cannot be calculated on the day of an interest rate reset, a value of “NC” will be shown.
Liquidity Facility - shows, for each liquidity facility applicable to the VRDO, the type – either a Letter of Credit, Standby Bond Purchase Agreement or a “self liquidity” program whereby liquidity is provided by the issuer, conduit borrower or affiliate. Also shows the identity of the liquidity provider and the expiration date.
Identity of Tender Agent - agent of the issuer to whom bondholders may tender their position in the VRDO.
Aggregate Par Amount - Bank Bond - current par amount of the VRDO, if any, held by liquidity providers (also known as securities held as “Bank Bonds”).
Aggregate Par Amount - Investors and Remarketing Agent- current par amount of the VRDO, if any, held by parties other than a liquidity provider, which represents the aggregate par amounts held by the VRDO Remarketing Agent and by investors. Note: A short position reported to the SHORT System will be displayed as a negative value in this field.