DALLAS — Texas lawmakers are considering two bills that would ban capital appreciation bonds with the aim of reducing the risk of deferred interest costs for local governments, particularly school districts in fast-growing areas of the state.

With more than $4 billion in capital appreciation bonds issued in Texas from 2003 to 2012, about 85% came from school districts, according to the Legislative Budget Board.

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.