Build America Bonds Produce Savings for Issuers, Treasury Says

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Federally subsidized municipal bonds have saved state and local government borrowers $12.3 billion in their first year compared with issuing traditional tax-exempt debt, says a new Treasury Department report. Issuances from the Build America Bonds program have become so popular in that time frame that they totaled more than $90 billion through the end of March. There have been 1,066 separate Build America Bonds issuances in 48 states and, as a result, such debt is worth about 20 percent of the total municipal bond market, says Alan Krueger, Treasury's chief economist.