WASHINGTON — A National Bureau of Economic Research study has concluded that while Build America Bonds have succeeded in their mission to lower financing costs for state and local governments, traditional tax-exempt bonds still offer more enticing after-tax yields to individual investors.
On average, state and local governments saved 54 basis points per year by issuing BABs instead of tax-exempts, according to the new study. It analyzed 6,177 different BAB transactions totaling $63.4 billion that were issued from April through December 2009 and compared them to the 95,233 tax-exempt deals totaling $332.2 billion that were issued during the same period.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access