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

Investing in Tobacco Companies is Harmful to Health, Stateís Bottom Line

The nationís biggest public pension fund, once again, is embroiled in controversy over whether or not to invest in companies that manufacture and market legal but often deadly cigarettes, cigars and other tobacco products. Read more right arrow to read more

Head to Head on Minimum Wage Increase

In the latest installment of Head to Head, Dave Regan, president of SEIU-United Healthcare Workers West, and Jot Condie, co-chair of California Consumers Against Higher Prices Coalition, debate the minimum wage increase in California. Read more right arrow to read more

WHAT DOES IT COST FOR
CALIFORNIA TO BORROW?

2.2%

Representative yield for 20-year, AAA-rated general obligation bonds, according to a major national market benchmark. (as of 5/23/16)

2.4%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 5/23/16)

3.4%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 5/22/15)

For every $1 billion in bonds issued, CA will pay $16.8 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

 

APRIL 2016

APRIL 2015

Statewide

up arrow to indicate an increase $8.417 billion

up arrow to indicate an increase $6.904 billion

State of CA

down arrow to indicate a decrease $2.962 billion

up arrow to indicate an increase $3.266 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

$3.3 Billion

In Public 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 4/30/16

AS OF 4/30/15

Ending Portfolio

down arrow to indicate a decrease $68 billion

up arrow to indicate an increase $68 billion

Average Effective Yield

up arrow to indicate an increase 0.53 percent

up arrow to indicate an increase 0.28 percent

Average Investment Life

down arrow to indicate a decrease 165 days

up arrow to indicate an increase 220 days

LOCAL AGENCY INVESTMENT FUND (LAIF)

 

AS OF 4/30/16

AS OF 4/30/15

Ending Portfolio

up arrow to indicate an increase $22.2 billion

up arrow to indicate an increase $21.2 billion

Participating Agencies

down arrow to indicate a decrease 2,461

down arrow to indicate a decrease 2,500

AVERAGE MONTHLY YIELD COMPARISON-APRIL


PMIA

0.525%

S&P GOV'T INVESTMENT POOLS

0.540%

FEDERAL FUNDS
RATE

0.369%

Source: State Treasurerís Office

Read More About PMIA right arrow to read more

Read More About LAIF right arrow to read more