Series 53: VRDO Reporting Requirements

VRDO Reporting Requirements

Recall that variable-rate demand obligations (VRDOs) are floating rate securities that have a nominal long-term maturity, but whose interest rates are periodically reset. Bondholders have the option to put the issue back to the issuer’s trustee or tender agent at any time, typically with a specified notification period. Bonds that reset interest rates on a daily basis require same-day notification. Weekly resets require seven days’ notification. VRDOs with monthly or quarterly tender dates also require seven days’ notice,