Powershares Build America Bond Porfolio ETF ( BAB) normally invests at least 80% of its total assets in taxable municipal securities eligible to participate in the Build America Bond program created under the American Recovery and Reinvestment Act of 2009 or other legislation providing for the issuance of taxable municipal securities on which the issuer receives federal support of the interest paid.
The new bond will allow local governments or even citizen groups to submit proposals for purchases that would be eligible for matching private and federal funds.