The bonds are backed by future revenues generated by the project, meaning investors are wagering that the development will be built out and populated. — Bloomberg
HOUSTON: In suburban Texas, a neighbourhood complete with an amphitheatre, dance hall and goat farm is scheduled to be erected 65 km from Houston’s downtown – providing municipal-bond investors a window to bet on one of the fastest-growing areas of the United States.
In a transaction that priced this week, a municipal authority sold high-risk, tax-exempt bonds to finance infrastructure associated with a housing development dubbed Two Step Farm.
