In the wake of the Great Recession of 2007–2009, however, many of these institu- tional investors now say they are eager to diversify their portfolios by investing in infrastructure. The California Public Employees’ Retirement System, for example, has already allotted $4 billion to be invested in . infrastructure projects over the next three years. 9 The success of so-called Build America Bonds has demonstrated that alternatives to traditional municipal bonds can have success in attracting pension funds and inter- national investors. The program, initiated in 2009, issued an estimated $117 billion in taxable state and local bonds for which the federal government directly subsidized.
