Whoever Wins Los Angeles Higher Debt Price Signaled: Muni Credit

Los Angeles bonds are beating the $3.7 trillion municipal market even as leading mayoral candidates oppose a measure to raise the sales tax while also vowing to eliminate a $450 million-a-year business levy.

As residents of the second-most populous U.S. city vote today on a successor to Mayor Antonio Villaraigosa, they also face a ballot measure to boost the sales tax to 9.5 percent from 9 percent. That would tie Los Angeles with Chicago for the highest rate among the 10 largest American cities.