The Depository Trust & Clearing Corp. last week released guidance on how it will support new taxable Build America Bonds entering the municipal market.

The DTCC has different guidelines depending on whether the Build America Bonds are issued as direct payment or tax-credit bonds. Under the direct-payment method, an issuer receives the 35% federal subsidy, while with the tax-credit bonds, investors receive a federal tax credit, which may be stripped and sold to other investors.

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