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Hopes Fade for Muni Debt Tool That Wall Street, Minerd Wanted

July 29, 2021, 6:29 PM

For the municipal-bond market, the infrastructure negotiations in Washington seemed like a surefire way to revive a popular debt tool that would unleash new business for Wall Street and buying opportunities for investors.

There were plenty of encouraging signs that lawmakers would resurrect some version of Build America Bonds, a federally subsidized debt program created in 2009 under the American Recovery and Reinvestment Act. Senators from both partieshad backed legislation this year to bring it back, after the program expired at the end of 2010. Last week, Morgan Stanley even unveileda forecast for hundreds of billions of dollars ...

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