New York is known for setting trends, not jumping on the bandwagon late. But the state took a wait-and-see approach for its first Build America Bonds, coming this week as part of a $1.24 billion personal income tax bond issue to be sold by the Dormitory Authority of the State of New York.
More than half those bonds, $710 million, will come to market as taxable BABs, according to the preliminary official statement. About $395 million are expected to be tax-exempt, and $135 million will be traditional taxable debt. The final mix could change, depending on investor demand.