Most private activity and conduit bonds do not have a substantial risk of being called if the proposed 28% cap on the value of tax exemption is enacted, Barclays Municipal Research said in a report this week.

After consulting with legal counsel, analyzing the proposed language of the 28% cap in President Obama’s 2011 jobs bill and reviewing tax call provisions in various official statements, Barclays concluded that most tax calls as written “have minimal risk” of triggering extraordinary mandatory redemption based on language of that proposed cap.

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