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Mississippi State Treasurer David McRae Mississippi State Treasurer David McRae


The Bond Division is responsible for the management of debt issued by the State Bond Commission. General Obligation debt consists of (1) Net Direct General Obligation Bonds and (2) Self-Supporting Bonds with specific revenue pledged.

This Division ensures the timely payment of all principal and interest for the State’s outstanding debt portfolio. In order to facilitate these payments, cash flow must be effectively managed from General Fund Appropriations and Special Fund Transfers.  As a member of the State Bond Commission’s Working Group, this division helps to oversee and manage the process of bond issuance for the State Treasurer, including the selection of underwriter and bond counsel.  Bond documents are reviewed and the State’s credit rating is also secured during the pre-issuance of debt phase.  Once complete, proceeds from the bond sale are transferred to the appropriate state agencies.

The Bond Division is also responsible for the drafting and distribution of the State’s Annual Debt Affordability Study (a study that was first published in 2014 to help guide the Legislature and Bond Commission as they assess the impact of bond programs on the State’s fiscal position).

The Bond Division also monitors the investment earnings on the gross proceeds of all federally tax-exempt bonds issued by the State (defined as “arbitrage”). U.S. Treasury regulations limit the yield at which proceeds on bond issues can be invested. These excess earnings are realized when bonds are sold at tax-exempt interest rates and the proceeds are then invested in securities that earn higher taxable yields. Calculations are performed on these excess earnings and are reported to the IRS regularly.​​