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Eaton Vance Tries to Get a Piece of the Stimulus Action

Plus, PIMCO investment process patent pending, and more.

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Eaton Vance plans to launch a fund that gives investors a way to buy bonds issued to fund economic stimulus projects.

Build America Bonds are taxable municipal bonds that carry special tax credits and federal subsidies. They were created when President Obama signed the recent economic stimulus bill into law. Because of these subsidies, issuers are often able to offer higher coupon payments than they otherwise would be able to. From April 15, 2009, through August 2009, a total of $28.2 billion of these bonds have entered the market according to Barclays Capital. The provision is set to expire at the end of 2010.

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Ryan Leggio does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.