Browsing Tag

California Municipal Bond

Individual Bond Municipal Bond

New California Municipal Bond Offering

municipal bonds

Buy California has a new municipal bond offering available to the public. General Obligation Bonds rated S&P A-. Last offer closes on September 25, 2012.

During an early order period, individual investors like you will have first pick before the large institutions get in. You won’t have to pay an upfront sales commission on the notes you purchase during this period. Buying initial offerings helps individuals reduce markup costs on Municipal bonds.

Revenue anticipation notes are fourth in line to get paid, so they are not as secure as general obligation bonds. Education is number one to get paid. General obligation bonds are number two in line behind schools, so the debt must be paid before most other payments. Payments to local governments are number three in line. Payments for income tax refunds are made after these notes are paid off.

September 25, 2012 Offering

This offer met strong investor interest allowing California to sell 13% more Bonds. The 30 year Municipal Bond yielded 3.72%. This rate is the lowest in California history. Investors liked California Muni’s because investors are nearly front of the line to get paid and California is trying to get their finances in order.

March 21, 2012 Offering

State Public Works Board Lease Revenue Bonds (Tax Exempt) were issued.

  • 1.11% for a 2 year maturity
  • 2.22% for 5yr
  • 3.83% for 10yr
  • 4.72% for 20yr municipal bond

March 1, 2012 Offering

Department of Water Resources Water System Revenue Bonds (Tax Exempt), and General obligation bonds. Rated Aa1 by Moody’s and AAA by Standard and Poor’s.

September 2011 Offering Results

The revenue anticipation notes final pricing-year-old was 0.38% for notes maturing on May 24 and 0.4% for notes maturing on June 26, 2012. Last year these notes yielded 1.5% and 1.75%. A significant drop!

Investors are worried about stock and bond markets and are willing to take his razor thin yields. California delivered an on-time budget on June 30, 2011. Standard & Poor’s these revenue anticipation notes their highest rating for the first time since 2007.