Google-Tied Prepaid Energy Bonds See Flood of Muni Trader Demand

Google parent Alphabet Inc.’s municipal-bond market debut was met by a surge of investor interest.

The tech giant’s first involvement in a prepaid energy deal out of California was announced on Tuesday, and the roughly $1 billion transaction came to market this week, capturing attention as the first deal in the prepaid sector with a major tech company.

Prepaid energy deals are complicated transactions that allow utilities to lock in cheaper prices over long periods of time. They involve a financial middleman that receives bond proceeds in exchange for making regular payments needed to procure the energy for the ...