New Jersey Sells $669 Million Refunding Amid Credit Pressures
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New Jersey issued $669 million in general-obligation refunding bonds at a higher yield above top-rated debt than on a comparable sale in December, a week after Moody’s Investors Service lowered its rating outlook.
The increased yield difference also came after bank analyst Meredith Whitney ranked it among the worst state credits. The third most-indebted U.S. state yesterday sold $133 million of bonds maturing in 2020 priced to yield 2.94 percent, 0.3 percentage points above the Municipal Market Advisers AAA rated 10-year index. In December, its 10-year maturities yielded 0.01 percentage point below the 10-year index.