Build America Bonds (BABs) were first introduced in April by Congress as part of the American Recovery and Reinvestment Act. Since then, analysts are expecting a little over $60 billion in BAB issuance in 2009.
The program is scheduled to expire at the end of 2010, but many believe that the deadline will be extended due to the popularity of the program with state and local government borrowers, which receive a 35% subsidy from the federal government. The net borrowing cost to state and local governments using the program has been running below the borrowing cost of using tax-free bonds.
You can follow the issuance of Build America and other taxable municipal bonds on MuniNetGuide’s Municipal Bond Calendar, which also lists competitive and negotiated bond sales for the week.