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PGIM

2024 Top 500 ranking: 16

Rate Reduction Bonds - Finding Value in an Esoteric Market

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Born out of deregulation in the 1990s, rate reduction bonds (RRBs) are increasingly used by utilities to fund costs associated with natural disasters and help fund the transition to clean energy. Securitized by fees charged to a utility’s customers, they typically provide predictable cashflows and are of generally high credit ...

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