Yield Hunger Overcomes Risk as N.J. Cuts Bond Cost: Muni Credit
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New Jersey, where Governor Chris Christie has lowered revenue forecasts, sold $350 million of general-obligation debt with investors starved for yield reducing the state’s borrowing cost to the cheapest in six years.
The state issued tax-exempt securities yesterday with a 10-year portion yielding 0.15 percentage point above benchmark municipal bonds, the smallest gap since 2007, data compiled by Bloomberg show. It was the first time since 2009 that New Jersey sold general obligations to finance new projects. In a sale of December that year, the state borrowed at a spread of 0.34 percentage point.