The latest on California politics and government
July 2, 2013
The multi-trillion-dollar municipal bond industry appears to be betting that California’s balanced state budget and improving economy will pay off in an improved credit rating.
The Bloomberg financial news service reported Tuesday, in the wake of a generally positive appraisal by Standard & Poor’s, that bond investors are demanding lower premiums for California bonds.
“The perception of California from an investor’s perspective is that it’s on an upswing,” said Robert Miller, an executive at Wells Capital Management in Menomonee Falls, Wisc., told Bloomberg. “I don’t think there is anybody out there who doesn’t think that they are going to receive an upgrade at some point.”
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