Four major municipal market groups yesterday urged the Treasury Department to immediately issue interim guidance on how to determine issue price for Build America Bonds, warning that confusion surrounding the topic is having a “chilling effect” on the still-developing market.

Meanwhile, the Treasury released guidance stating that issuers can apply tax-exempt bond rules to BABs for purposes of determining issue price. That is  something the Government Finance Officers Association, the National Association of Bond Lawyers, the Regional Bond Dealers Association, and the Securities Industry and Financial Markets Association had asked for in their two-page letter. 

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