In the municipal bond market, 2010 will be remembered as the year of the BAB. Thanks to a rush to issue Build America Bonds before the stimulus program expired on Dec. 31, volume in the final quarter was $132.5 billion, about one-third higher than the amounts issued in the previous three quarters.

This occurred in a year when state and local governments borrowed more money than any other year on record, according to Thomson Reuters. Total long-term issuance expanded 5.4% to $431.89 billion last year, beating the previous record from 2007 when volume totaled $429.9 ­billion.

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