WASHINGTON - Primary and secondary market trading for Build America Bonds totaled $23 billion on 30,633 trades, according to a report released Thursday by the Municipal Securities Rulemaking Board.
BABs accounted for 4% of the overall municipal par volume and 2% of the number of trades reported to the MSRB during roughly the first two months after the first BABs were issued.
From April 15 through June 11, 79 issuers in 25 states and the District of Columbia took advantage of the program, with 84 different issues totaling $11.9 billion, the MSRB said in the six-page report, citing Thomson Reuters and Bloomberg LP data.
During the same period, BAB issuance accounted for 16% of all long-term new issues, or debt with maturities of 13 months or more, and 75% of all long-term taxable issuance.
In addition, issuance of BABs caused the municipal taxable market to account for nearly 11% of all long-term issuance in 2009 through June 11, considerably higher than the historic annual average of 7% since 2000. The board cited estimates from unnamed sources that BAB issuance will top $50 billion in 2009 with another $100 billion coming to market in 2010.
As of June 11, 45% of all BAB issues have been used for general public improvement projects, 30% for transportation, 16% for education, 5% for electric and public power, and 3% for water, sewer, and gas facilities projects.