Tag: POBs
Even taking a nuanced view, enthusiasts should proceed with caution. Pension obligation bonds (POBs) are in the air. Kansas, Colorado, Pennsylvania and several other states and localities have considered, are considering, or have decided upon issuing a POB to address their pension shortfalls. POBs could potentially be used responsibly by fiscally sound governments who understand…
But they are used only by the desperate. Due to popular demand and the notion that, in the right hands, they might be useful, we have updated our work on pension obligation bonds (POBs). The early versions of these bonds offered a simple tax arbitrage. The plan sponsor would issue a bond at a tax-exempt…
