An investigative piece from ProPublica into the piecemeal securitization of the 1998 tobacco settlement revenue, and the increasing toxicity of the ensuing debt. States essentially sold out their future revenue stream, and committed to paying more back out in order to plug short-term budgetary holes. These obligations extend for decades, and have ballooned into the billions of dollars, dwarfing what the actual payouts would have been. It is unlikely that these bonds will ever be repaid to the agreed upon terms.

The securities in question are Capital Appreciation Bonds (CABs).