Oregon Public Broadcasting

Wall Street is looking at Oregon Wednesday as the state's Department of Transportation works to float its first 'Build America Bond' sale.

The state is bringing almost $600 million worth of highway bonds to the market. The money will be used to build roads and bridges. It'll be paid back over time by gas taxes and registration fees.

By going to market now, the state treasurer is betting interest rates are at their lowest and are likely to rise.

Michael Hamilton is a portfolio manager for FAF Advisors. He plans to buy some of the bonds. He says a lot of people are watching the deal.

"And the reason this one is getting some attention is that it's the largest deal in the municipal bond market this week,"  Hamilton said.

Oregon and many other states and municipalities are using so-called 'Build America Bonds' because they provide a 35 percent subsidy from the federal government. It's another form of economic stimulus.

The sale isn't expected to close until next week. And economists won't know whether the subsidy was good or bad for taxpayers until the bonds mature.