Intersections: A monthly go-to for reliable facts and analysis about California's debt, investments and economy

No Blank Checks Initiative Raises Many Questions

California's long history of passing laws at the ballot box is rife with unintended consequences. The No Blank Checks initiative slated to go before voters in the November general election is consistent with that trend. Read more right arrow to read more

New feature in April: Head to Head on Pension Reform

In one corner, the executive director of the California School Employees Association; in the other corner, the former mayor of the city of San Jose. Dave Low and Chuck Reed go Head to Head on the issue of public pension reform in Intersection's new section. Read more right arrow to read more

WHAT DOES IT COST FOR
CALIFORNIA TO BORROW?

2.6%

Representative yield for 20-year, AAA-rated general obligation bonds, according to a major national market benchmark. (as of 3/22/16)

2.8%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 3/22/16)

3.0%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 3/23/15)

For every $1 billion in bonds issued, CA will pay $18.7 million more in debt service over a 20-year period than a AAA-rated borrower.

All indicators reflect yields-to-call on bonds with 5% coupons and 10-year call options. Source: Municipal Market Data, licensed and used with permission.

CALIFORNIA'S CURRENT GENERAL
OBLIGATION CREDIT RATINGS

FITCH

A+

MOODY'S

Aa3

S&P

AA-

Read More About California’s Credit Ratings right arrow to read more

DEBT ISSUANCE

 

FEBRUARY 2016

FEBRUARY 2015

Statewide

down arrow to indicate a decrease $1.752 billion

up arrow to indicate an increase $3.743 billion

State of CA

up arrow to indicate an increase $0.387 billion

down arrow to indicate a decrease $0.073 billion

Source: CA Debt and Investment Advisory Commission

Read More About Debt Issued So Far This Year right arrow to read more

DebtWatch: A Powerful Way of Exploring Debt in CA right arrow to read more

See The Calendar of Issues right arrow to read more

TREASURER'S OFFICE HIGHLIGHTS

$2.9 Billion

In Taxpayer Benefits From Refinancings Conducted by Treasurer Chiang Since January 2015

Upcoming Bond Sales Calendar right arrow to read more

INVESTMENTS

POOLED MONEY INVESTMENT ACCOUNT (PMIA)

 

AS OF 2/29/16

AS OF 2/28/15

Ending Portfolio

up arrow to indicate an increase $64 billion

up arrow to indicate an increase $58 billion

Average Effective Yield

up arrow to indicate an increase 0.47 percent

up arrow to indicate an increase 0.27 percent

Average Investment Life

down arrow to indicate a decrease 159 days

208 days

LOCAL AGENCY INVESTMENT FUND (LAIF)

 

AS OF 2/29/16

AS OF 2/28/15

Ending Portfolio

up arrow to indicate an increase $21.3 billion

down arrow to indicate a decrease $20.5 billion

Participating Agencies

down arrow to indicate a decrease 2,467

down arrow to indicate a decrease 2,506

AVERAGE MONTHLY YIELD COMPARISON-FEBRUARY


PMIA

0.467%

S&P GOV'T INVESTMENT POOLS

0.470%

FEDERAL FUNDS
RATE

0.367%

Source: State Treasurerís Office

Read More About PMIA right arrow to read more

Read More About LAIF right arrow to read more