FBAMDX

About FBAMDX

First Trust Combined Series 298 Build America Bonds Portfolio Series 2 is a unit investment trust designed to offer investors exposure to a fixed portfolio of Build America Bonds, a category of taxable municipal bonds introduced under the American Recovery and Reinvestment Act of 2009. The primary function of this portfolio is to provide a source of current income and potential capital preservation by investing exclusively in investment-grade taxable municipal securities issued by state and local governments. These bonds, unlike traditional municipal bonds, pay taxable interest, but were created to subsidize public infrastructure and economic development projects across the United States through federal support, benefiting both issuers and investors. The portfolio is concentrated in the Build America Bonds sector, which can entail risks associated with limited diversification and sector-specific market movements. It operates as a regulated investment company, distributing income to unit holders periodically. The trust structure means the underlying holdings are fixed for the life of the portfolio, providing transparency over composition and maturity characteristics. This asset plays a unique role in the financial market by offering access to federally subsidized municipal debt, supporting public works while diversifying traditional fixed-income allocations.