Build America Boom Set to Bust After Busiest Week: Muni Credit
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Sales of Build America Bonds, which have enabled states and cities to borrow about $185 billion from investors around the world since last year, are drying up a week before the federally subsidized program is set to end.
Next week’s scheduled issuance will plummet to $35 million, the second-lowest total since April 2009, after reaching a record in the past five days, according to data compiled by Bloomberg. A record 141 individual offerings of the debt, which is set to expire Dec. 31, have been sold in the last two weeks, Bloomberg data show.