Blue Rose Advisors Blog

Private Activity Bonds (“PABs”) are a specific type of municipal bond (“muni bonds”) where the ultimate borrower is often a nonprofit private entity. PABs allow these nonprofit organizations to issue tax-exempt bonds through conduit issuing authorities, unlike state and local governments that issue tax-exempt bonds under their own authority. PABs provide these entities an important vehicle for funding capital projects at a lower cost of capital than the taxable bonds market