New-issue prices for Build America Bonds remain a hot topic among municipal market participants, as several market groups last week were weighing asking the Treasury Department for clarification on the subject.

The lack of clarity on American Recovery and Reinvestment Act provisions relating to BAB premiums, coupled with heightened Internal Revenue Service interest in the initial pricing of BABs, has caused a lot of concern on issue prices, though no consensus has emerged as to the proper way to address the matter.

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