The Obama administration’s proposal to renew the Build America Bond program may suffer from the same problem it had the first time around, when the federal government didn’t think municipalities would use BABs that much.

The 35% interest subsidy bestowed upon state and local governments issuing taxable bonds under the American Recovery and Reinvestment Act turned out to be too generous.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.