TITLE

As BAB Deluge Picks Up Correlations Are Slipping

AUTHOR(S)
Seymour, Dan
PUB. DATE
November 2010
SOURCE
Investment Dealers' Digest;11/5/2010, Vol. 76 Issue 41, p1
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article focuses on the correlations between Build America Bonds (BABs), which is the taxable municipal bonds created under the American Recovery and Reinvestment Act in February 2009 and other assets. It says that the correlations are expected to collapse due to the closure of taxable state and debt sales of local government in 2010. It adds that the supply and the expiration of BABs program will unbind the spread between taxable municipal bonds and Treasuries from other types of spreads.
ACCESSION #
55154642

 

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