Using data from the California primary market, we find that on average Build America Bonds (BABs) have after-subsidy interest rates of approximately 72 basis points lower than tax-exempt bonds, and the saving increases with bond maturity. The implied tax rate for the marginal municipal bond...

This article explores the question of whether bond insurers are able to sufficiently evaluate the credit risk of insured bonds, the answer to which would determine the future of municipal bond insurance. A sample of insured municipal bonds is investigated to determine whether bond insurance...

This study examines how familiarities between the main actors in the underwriting process affected the borrowing costs of municipal bonds in the primary market in California between 2001 and 2006. The author finds that familiarities play an important role in determining the borrowing costs of...