Posts Tagged ‘municipal bonds’

California Pays More for its Municipal Bonds

California today paid a higher yield than previously expected to sell $10 billion in revenue anticipation notes to help fund its budget deficit. The state sold $2.25 billion in RANs that mature in May 2011 at a yield of 1.50%. California’s state treasurer’s office said that the bulk of the sale ? $7.75 billion maturing […]


Will California Default?

California municipal bonds have just plummeted these past few days as investors worry about the ability of California to repay its bond obligations. California faces a massive $25 billion shortfall in revenues to fund state obligations, and Governor Schwarzenegger has been wracking his head over how to do it. Chris Whalen, a financial industry analyst […]


Municipal Bond Yields

Ten year tax free municipal bonds are now yielding 2.58%, which is an effective taxable rate of 3.97% if you are in the top 35% tax bracket. If the Bush tax cuts end next year, the yield jumps to 4.27% for people in the highest income tax bracket. For 30 year munis, the effective taxable […]


Default Troubles for State Governments?

You probably know that many local and state governments are in a big financial mess right now. California is not the only state experiencing financial problems. While California cut its budget this year, can it do it again next year and the year thereafter if things stay bad? That’s just the dilemma for California. Now […]

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