New York Bonds Rally to Two-Year High as Tax Collections Riseby
In Mayor Bill de Blasio’s New York bond spreads, which measure the risk of the city debt, are at a more than two-year low as the economy generates more tax revenue than forecast.
The spread, or extra yield, that investors demand to hold New York City general obligations bonds hit 0.26 percentage point on Friday. That compares to 0.56 percentage point when the mayor took office in January 2014.
New York City’s economy will generate a $465 million surplus, $330 million more than de Blasio projected in his current budget, state Comptroller Thomas DiNapoli said Tuesday. The biggest U.S. city added a record job 120,000 jobs in 2014 and is on pace to add 100,000 this year, DiNapoli said. Wall Street profits will probably exceed last year’s $16 billion.