Build America Bonds - BABs  Dictionary Says  Definition of
'Build America Bonds - BABs'  Taxable municipal bonds that
feature tax credits and/or federal subsidies for bondholders and
state and local government bond issuers. Build America Bonds
(BABs) were introduced in 2009 as part of President Obama's
American Recovery and Reinvestment Act to create jobs and
stimulate the economy. BABs attempt to achieve this by lowering
the cost of borrowing for state and local governments in
financing new projects. Investopedia Says  Investopedia explains
'Build America Bonds - BABs'  In general, there are two distinct
types of BABs: tax credit bonds and direct payment bonds. Tax
credit bonds offer a 35% federal subsidy of the interest paid to
bondholders, while direct payment bonds offer a similar subsidy
in the form of a tax credit paid to the bondholder.  Related
Video for 'Build America Bonds - BABs'  Articles Of Interest
1. A Look At National Debt And Government Bonds    2. Basics Of
Federal Bond Issues    3. The A