Equity-backed Texas housing project taps Muni market

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.