Credit: Shutterstock photoThe popular Build America Bonds program may get a second chance at life if President Obama's budget passes in its current incarnation.
The budget not only calls for the program to be revived, but it wants to make the program permanent. Last year, however, Republicans blocked efforts to extend the program and it could meet with similar resistance this time, says Bloomberg .
Since the program's end, BABS) have all lost between 1.5% and 2% in the last month.
iShares S&P National AMT-Free Municipal Bond ETF (NYSEArca: Pullback In Muni ETFs-Just A Blip?]
Randall Forsyth for Barrons reports that the bill is the brainchild of Rep. Gerald Connolly, D-Va. His bill proposes to extend the BABs program through 2012 at subsidy rates of 32% in 2011 and 31% in 2012. The ending of the BABs program was a big reason for the large sell-off in the muni market. [ Muni Market Collapsing: How Do Active Munis Compare? ]
If Obama's proposal goes through, that would be an even better deal.
Tisha Guerrero contributed to this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
