State of CA To Issue $2.5 Billion in General Obligation Bonds Starting Monday

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Last November, the voters of CA approved more than $37 billion in bond issuance to improve the state’s infrastructure.

Next Monday and Tuesday retail investors will be able to place orders for $2.5 billion in bonds that go on sale Wednesday June 20 (see 

The bonds are being issued as 10 separate series, 4 of which with a principal value of $1.765 billion are to finance infrastructure improvements for CA public education K-University (see pgs. 10-11 of the “Preliminary Official Statement”, June 11).

It’ll be interesting to see how these bonds are priced given the current upheaval in fixed income markets. 

For some unfounded reason, Standard & Poors raised the state’s credit outlook on Monday while leaving its credit rating at A+ (see here for a table explaining what these ratings mean).

If anybody wants to buy some of these bonds, the steps are here.

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