WASHINGTON - Bonds from mid-1980s black box and collapsible escrow deals that have been or may be declared taxable by the Internal Revenue Service are trading at a premium because their coupons are high compared with today's rates, traders said this week.

The coupons on many of those deals ranged from 6.75% to 8.00% when they were first issued or remarketed to public investors in 1985 and 1986, the traders said. That compares with yields this week of 3.40% to 3.75% for taxable securities with comparable maturities, they said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.