BRADENTON, Fla. — When the Municipal Electric Authority of Georgia sold $2.66 billion of bonds in March for the first U.S. nuclear power project in nearly three decades, it faced a challenge.  With interest rates so low and the financial markets so uncertain, how would it invest such a huge portfolio of bond proceeds before it needed to draw funds to pay for its share of two new nuclear units at Plant Vogtle near Augusta?

Most of the debt was issued as taxable Build America Bonds, and officials with MEAG Power said they had to match a longer-than-traditional construction draw schedule of over seven years, versus a more typical schedule of two to three years, with investments that would limit negative arbitrage.

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