SPACS (Special Purpose Acquisition Companies) have been a vehicle of choice over the past few years with more than $12 billion underwritten in 2007. However, a better looking cousin is new on the scene that has the potential to steal SPAC'S glory away. Take a look at the family resemblance, and advantages, of MUNI-ACS.
MUNI-ACS raise capital through the issuance of bonds, however offer a return scenario resembling nothing like a traditional bond. Similar to their SPAC cousins, the bond pool is not yet backed by any revenues. Rather, they create a pool of cash used for acquisitions of publicly traded power and utility companies by tax-free local government utilities.
