Wells Fargo has launched Wells Fargo Build America Bond Index – a rules-based index measuring the performance of certain types of municipal bonds issued under the American Recovery and Reinvestment Act of 2009.
Reportedly, Build America Bond program authorizes state and local governments to issue Build America Bonds (BAB) as taxable municipal bonds in 2009 and 2010, to finance any governmental purpose for which they otherwise could issue tax-exempt government bonds (other than private activity bonds).
Dan Forth, head of strategic indexing for Wells Fargo, said: Build America Bonds are a vital step in the evolution of the Municipal Bond market. The Wells Fargo Build America Bond Index will help educate investors and advisors by providing additional transparency for this emerging asset class and is another way for our clients to monitor this growing market.
As of August 21, 2009, the BAB market has grown to roughly $27 billion in originations.
