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| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
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0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| More |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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Treasury Says Build America Bonds to Save Issuers $12.3 Billion |
By Daniel Kruger
April 2 (Bloomberg) -- State and local governments will save $12.3 billion on sales of more than $90 billion of Build America Bonds, compared with the cost of selling the debt on a tax-exempt basis, according to Treasury Department study.
The securities, the fastest-growing part of the $2.8 trillion municipal market, were created by Congress as part of the federal economic stimulus package. Issuers have sold about $91 billion of the debt so far and $26 billion in the first three months of this year, according to data compiled by Bloomberg. The program provides a 35 percent interest-rate subsidy for debt-funded government projects.
The subsidy, which was designed to be greater than the tax exemption that interest on most state and local government bonds receive, has been used to finance 1,066 projects following its creation in February 2009, the Treasury said in the study, which was released today.
As the bonds have become more widely traded and held, the underwriting cost to municipalities has shrunk to levels more consistent with traditional fees charged by investment banks for tax-exempt offerings, the Treasury said. Issuers have been paying higher fees because of the costs associated with marketing the new securities to investors outside the traditional buyers of tax-exempt debt, including pension funds and international investors, the report said.
The U.S. House of Representatives voted last week to extend the Build America Bond program, scheduled to expire at the end of this year, into 2013. The bill would reduce the federal subsidy to 33 percent in 2011, 31 percent in 2012, and 30 percent in 2013, according to a congressional summary.
President Barack Obama proposed extending the program in his fiscal 2011 budget last month, calling for a reduction of the subsidy to 28 percent.
Oregon’s Department of Transportation brought $556.4 million of Build America Bonds to market this week, double the amount of money it will need this year, in case the program expires or the subsidy decreases, Laura Lockwood-McCall, director of the debt management division of the Oregon State Treasury said on March 30.
--With assistance from Catarina Saraiva in New York. Editors: James Holloway, Dave Liedtka
To contact the reporter on this story: Daniel Kruger in New York at dkruger1@bloomberg.net
To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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