California Answers Call for $750 Million in Build America Bonds - Bloomberg.com:
"Nov. 3 (Bloomberg) -- California is responding to investor demand for more of the state’s Build America Bonds by offering about $750 million today after a so-called reverse inquiry that is more common for corporate issues than for municipals.
The U.S. state with the most people and lowest credit ratings, which earlier said it intended to sell $1.5 billion of tax-exempt debt this week, announced plans yesterday to answer a request by offering another taxable issue for which the U.S. government pays 35 percent of the interest. Citigroup Inc. is handling the deal.
Investors such as life insurers and taxable-bond funds already have been drawn to the $7 billion in Build America issues brought out so far by California. The bonds, backed by its general obligation pledge, carry higher yields and longer terms than most similarly rated company debt."
"Nov. 3 (Bloomberg) -- California is responding to investor demand for more of the state’s Build America Bonds by offering about $750 million today after a so-called reverse inquiry that is more common for corporate issues than for municipals.
The U.S. state with the most people and lowest credit ratings, which earlier said it intended to sell $1.5 billion of tax-exempt debt this week, announced plans yesterday to answer a request by offering another taxable issue for which the U.S. government pays 35 percent of the interest. Citigroup Inc. is handling the deal.
Investors such as life insurers and taxable-bond funds already have been drawn to the $7 billion in Build America issues brought out so far by California. The bonds, backed by its general obligation pledge, carry higher yields and longer terms than most similarly rated company debt."