How a Four-Person Team Manages $1B in Debt with DebtBook

Why Vermont Bond Bank Needed a Better Way

Since 1970, the Vermont Bond Bank has helped local governments across the state access affordable financing for essential infrastructure. With just four full-time employees, the agency manages a $1 billion debt portfolio on behalf of nearly every municipality and school district in Vermont. 

As the Bond Bank prepared for billions in future school construction, it began transitioning toward a more modern financing model — what Gaughan has coined as “Bond Bank 2.0.”

“Our traditional model relied heavily on the state's moral obligation to back bonds,” said Gaughan. “Bond Bank 2.0 transitions us to a structure with senior and subordinate liens, allowing us to maintain credit quality while limiting our dependence on state support. It’s a more resilient and scalable model for future infrastructure investments.”

The new structure introduces senior and junior liens to reduce reliance on the state’s moral obligation while positioning Vermont for long-term growth. But executing that shift required complete clarity into the Bond Bank’s existing debt portfolio, including every bond, refunding, and maturity across multiple programs.

“We were pretty dependent upon our financial advisors and underwriters for all of our backup data. From a resiliency standpoint, we needed to stand on our own two feet.”

The team needed a way to:

• Manage all debt data independently and accurately
• Track historical refundings and maturities
• Preserve institutional knowledge across decades
• Support new structural changes with reliable data

Use Case #1: Centralizing Debt Data for a $1B Portfolio

The Bond Bank implemented DebtBook’s Debt Management platform to bring every piece of its debt portfolio — from original issuances to recent refundings — into a single, centralized system.

DebtBook’s purpose-built software mirrors how public finance professionals think about debt portfolios, allowing the Bond Bank to manage its information like a banker would: with precision, structure, and confidence.

“The DebtBook platform is pretty easy to understand — it’s organized in a way that makes sense, very similar to how the conventional debt profile is organized for many bankers on the street."

With DebtBook, the team can:

• Maintain a dynamic, real-time debt profile
• Access bond histories instantly for reporting and audits
• Track maturities and refundings across multiple programs
• Consolidate documentation securely for long-term continuity

Use Case #2: Strengthening Resiliency and Institutional Knowledge

With just four staff members managing over a billion dollars in loans, data resiliency is critical. DebtBook provides a centralized, durable system of record that ensures the Bond Bank’s operational continuity — regardless of personnel changes.

“We're a small shop. We're only four people, and if I’m not here tomorrow, for whatever reasons, we need resiliency that will maintain the bond bank's integrity over decades to come.”

The team no longer needs to rely on individual spreadsheets or advisor reports. Every detail, from payment schedules to refunding histories, is stored in one secure, accessible platform. That consistency allows the Bond Bank to make informed decisions and provide reliable information to stakeholders with confidence.

Use Case #3: Modernizing to "Bond Bank 2.0"

As the Bond Bank evolves to meet Vermont’s next generation of capital needs, DebtBook has become a foundational part of its “Bond Bank 2.0” modernization.

The team uses DebtBook to view bonds by lien type (legacy, senior, or junior), monitor consent progress, and track how new issuances interact with existing obligations, an essential capability for a pooled-loan structure managing hundreds of borrowers.

“Having a dynamic debt profile means we can tag everything issued after the summer of 2022, for example, and watch older bonds mature. With DebtBook, that’s easy to do, and it’s been really helpful for keeping track of where we stand over time.”

This structured visibility helps the Bond Bank plan strategically, manage risk, and ensure a smooth transition to the new multi-lien model designed to sustain Vermont’s infrastructure investment for decades to come.

Use Case #4: Enhancing Transparency & Reporting

Accuracy and transparency are cornerstones of the Bond Bank’s work. With DebtBook, the team can produce clear, consistent reports for state partners, rating agencies, and borrowers, demonstrating the same discipline and structure investors expect from larger financial institutions.

DebtBook’s organized framework also supports the Bond Bank’s mission to lower the cost of capital for Vermont communities by maintaining confidence and clarity in every transaction.

“Getting the story straight on what bonds we’ve refunded — and being able to go back in time to track how the debt profile has changed — is critical for our reporting. Those dynamic features in DebtBook make that process much easier for our team.” 

Not Just Software — A Platform for Growth

DebtBook has become an essential part of the Vermont Bond Bank’s operations — a backbone that supports modernization, transparency, and scale.

By centralizing complex data, preserving institutional knowledge, and aligning processes with the realities of public finance, the four-person team now manages $1 billion in debt with accuracy and confidence — positioning Vermont for its next chapter of public investment.