Worst California Debt Slump Sends Buy Signal
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Even as California faces a $15.7 billion deficit that has grown almost 70 percent since January, the state spells opportunity for municipal-bond investors.
Debt of the world’s ninth-biggest economy is slumping the most in three months with a June 15 deadline for lawmakers to pass a balanced spending plan looming. The extra yield on California issuers relative to top-rated bonds rose as much as 16 percent in the past month, the steepest jump since March, Bloomberg Fair Value data show.