California Debt Faces ‘Pent-Up Demand’ as $2 Billion Sale Nears
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California will benefit from “pent-up demand” for its debt in the $2 billion sale of general-obligation securities it plans for March 1, said Robert Miller, a senior portfolio manager at Wells Capital Management.
The state’s debt is rallying the most in three years after Governor Jerry Brown and Treasurer Bill Lockyer curbed borrowing to help shrink deficits totaling more than $35 billion since Brown took office in January 2011. The state borrowed $3.3 billion in 2011, the least in four years, and hasn’t sold tax-exempt debt since October.