If sequestration happens in January and Build America Bond subsidy payments are cut by 7.6%, Citi doesn't expect major issuers of the federally subsidized taxable bonds--like California, New York City and Illinois--will be hurt much financially. Rather, any reductions would likely do more reputational harm. "At the inception of the Build America Bond program, the biggest concern for both investors and issuers was the potential for a cut of in the 35% subsidy," notes Citi. "Now, investors are beginning to feel that their fears have been justified."
Find us on Google+
No comments:
Post a Comment