S&P creates taxable municipal bond index

JR Rieger, Standard & Poor's

Index provider Standard and Poor’s (S&P) has created an index to track the US taxable municipal bond market, which has seen much growth since the advent of the Build America Bond programme in April 2009.

The S&P Taxable Municipal Bond Index expands on S&P’s existing municipal bond family and meets demand from investors who want to diversify by investing in an asset class that has lower default risk and higher yield than similarly rated, similarly structured corporate bonds.

The Build America Bond