By Keeley Webster
March 3, 2017
LOS ANGELES — California brings the largest municipal bond deal of the year so far with a $2.4 billion general obligation bond sale.
The deal will be priced for retail investors Monday with institutional pricing on Tuesday.
“There is still very strong demand for California paper in the market, especially when it comes in size,” said Tom Schuette, partner and co-head of investment research & strategy for Gurtin Municipal Bond Management.
Though the state’s ratings have not changed recently, Schuette said Gurtin “believes that the state’s credit quality continues to strengthen as California has maintained solid fiscal discipline and experienced a sustained run of favorable revenue trends.”
The deal includes $500 million in new money; advance refundings are expected to represent a significant chunk of the $1.9 billion of debt being refinanced.
The bonds are rated Aa3, AA-minus and AA-minus with stable outlooks from Moody’s Investors Service, S&P Global and Fitch Ratings.