Don't Worry Muni Bond Investors, Republicans Are Going To Bring Build America Bonds Back

Republican Congressman John Mica has confirmed that, as the new House Transportation and Infrastructure Committee chairman, he plans to bring Build America Bonds back, according to Bloomberg.

Mica says that, while the program will be somewhat different, it’s going to come back, potentially as part of a bigger bill. The larger bill may include other transportation spending, according to Bloomberg.

The end of the Build America Bond program, which was part of President Obama’s stimulus bill, has been described as a “Black Swan” by some, who suggest it could crush the state debt market.

Pimco’s Bill Gross has been moving back into munis of late with his own cash, indicating he’s confident the support program for state bond issuance will come back, in some form.

Note the recent recovery in the muni bond etf.

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