California Sells Build America Bonds at Yields Above Corporates
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California completed its sale of $3.275 billion of taxable debt today, a day after increasing it almost 20 percent amid demand for yields that exceed those on some lower-rated corporate bonds.
The sale included $3.025 billion of federally subsidized Build America Bonds and $250 million of traditional taxable general-obligation securities. Coupons were set at 3.25 percentage points more than comparable-maturity Treasuries on $2.11 billion of the Build America debt due in 30 years, according to state Treasurer Bill Lockyer’s office. That would mean a yield of about 7.52 percent, based on Treasury rates.