Florida Beats Texas as Homes Slim Penalty: Muni Credit
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Florida’s debt is starting to punch its weight in the $3.7 trillion municipal bond market as the state’s jobless rate has fallen more than in 42 counterparts in the past two years.
The fourth-most populous state, one of only nine with a top general-obligation grade from Standard & Poor’s, has seen the extra yield on its bonds shrink by about 25 percent this year over the average AAA security, Bloomberg Fair Value data show. Peter DeGroot at JPMorgan Chase & Co. says the yield spread has “further room to tighten” amid declining unemployment and climbing home sales.