MIAMI — With the potential expiration of popular Build America Bonds at the end of the year, issuers looking to finance transportation projects should not rule out using variable-rate debt in their portfolios or wrapping bonds with insurance, experts said here Monday.

Even though variable-rate debt remains at attractive interest levels, vast numbers of issuers have moved away from using it since many made costly decisions to terminate swaps and the prices for letters of credit soared, according to Swap Financial Group managing director Peter Shapiro. LOC costs are dropping and new players are coming into the market, such as small U.S. banks, he said at the The Bond Buyer’s 11th Annual Transportation Finance/Public-Private Partnership Conference.

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