Connecticut Offers Most General-Obligations Since September

Connecticut, home to hedge fund capital Greenwich, is selling $400 million in general-obligation bonds today and tomorrow, its largest such sale since September.

The state is offering $340 million with a final maturity of 2034, and $60 million in floating-rate securities, according to deal documents. In September, it sold $560 million in general-obligations to plug a deficit.

A Connecticut general-obligation bond maturing in 2026 traded yesterday at an average yield of 3.11 percent, or 0.27 percentage point over benchmark munis, data compiled by Bloomberg show.

Standard & Poor’s grades Connecticut AA, its third-highest investment grade, saying the state has a diverse economic base and a projected $22.3 million surplus for fiscal 2015. Per-capita income in Connecticut was $59,687 in 2012, the highest among states, deal documents show. For the same year, the Nutmeg State was last in the U.S. in economic growth, declining 0.1 percent, S&P said.

Connecticut bonds have gained 1.96 percent so far this year, trailing the 2.76 percent for all munis and 2.62 percent for state general obligations, Barclays Plc data show.

To contact the reporter on this story: Romy Varghese in Philadelphia at rvarghese8@bloomberg.net

To contact the editors responsible for this story: Stephen Merelman at smerelman@bloomberg.net Mark Schoifet

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