California School CABs Make Comeback

LOS ANGELES -- Issuance of capital appreciation bonds by California school and community college districts more than tripled from 2014 to 2015 despite a law designed to limit their use of the bond structure.

School and community college districts only issued $292 million of CABs in 2014, the year the law took effect, but issuance spiked in 2015 to $999 million, according to data produced by the California Debt and Investment Advisory Commission at The Bond Buyer's request.