N.Y.C. Comptroller Candidate Eyes Infrastructure BABs

New York City pension funds should invest in Build America Bonds that are used for city infrastructure projects, City Councilman and comptroller candidate John Liu said yesterday.

"It would provide an attractive rate of return," Liu said, while "at the same time provide needed capital financing for New York and other municipalities' projects."

Liu said that if he were elected he would push for the city to issue BABs for capital projects, citing the 35% federal interest subsidy as a bonus to the city. He said he would direct the pension fund to invest in BABs issued for city infrastructure by both city and state agencies.

Liu is running for comptroller against three other City Council members: David Weprin, David Yassky and Melinda Katz. The comptroller's office oversees the city's five pension funds which are valued at about $82 billion.

He also proposed collaborating with other pension funds across the county to invest infrastructure in New York City and other municipalities in order to diversify the pension funds' portfolio.

New York City director of investor relations Raymond Orlando said that the city was still considering the use of BABs and other bond programs under the American Recovery and Reinvestment Act.

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