Naz News, Gappers and FLE's

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opinion of a bond seller-fwiw. Build America Bonds are taxable bonds issued by municipalities. The Federal Government is responsible for paying 35% of the interest cost, so in a lot of cases, its cheaper for a municipality to issue taxable bonds than tax exempt. What Blackrock is doing is creating a long term fund made up of many different issues and charging you a fee for managing it. You can do better with essentially minimal difference in credit risk by buying individual bonds. You can find lots of issuers in Texas that have issued BABs.