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.

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To contact the editors responsible for this story: Stephen Merelman at Mark Schoifet

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