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Additionally, businesses in other industries may need different bonds to operate legally

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The merger talks announced on Friday between Reynolds American and Lorillard could create a new tobacco giant in the United States

Nassau's 2006 financing was part of a wave of tobacco bond deals brought by states that securitized payments from the multi-state 1998 Master Settlement Agreement, where cigarette manufacturers compensated the states for the cost of caring for sick smokers

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Smoking causes health conditions including cancer, heart disease, stroke, lung diseases, diabetes, chronic obstructive pulmonary disease (COPD) (which includes emphysema and chronic bronchitis), and more, notes the CDC