SAN FRANCISCO — A group of California muni bond issuers is looking to the corporate bond market for a liquidity structure that members hope will dramatically lower costs and reduce the bank risk that plagues the municipal variable-rate demand obligation market.

“We are trying to get banks to provide us liquidity at rates that are more comparable to the corporate market,” said Gary Breaux, director of finance at the East Bay Municipal Utility District in Oakland. “We think we ought to get at least as good a price as the corporate market because we’re usually more highly rated.”

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