Love those CA bonds

So what if California has the lowest credit rating of any state in the nation - Treasurer Bill Lockyer's plan to sell up to $4 billion in taxable bonds is attracting lots of interest from big investors.
The bonds are expected to be priced tomorrow. From Tom Petruno at Money & Co.:

The talk in the marketplace today was that the 30-year bonds in the state's offering would pay an annualized yield of about 7.4%. With the government covering 35% of that, the net interest cost to the state would be about 4.8%. That would be a significant savings compared with the 6.1% yield California paid on 30-year tax-free bonds it sold March 24.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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