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California Pension Fund Relies on Muni Bond Sales for New Office

  • Calstrs sold $15.7 million in debt to finish headquarters
  • Hybrid work schedule for employees to continue next year
A rendering of the new Calstrs building in West Sacramento, California.
A rendering of the new Calstrs building in West Sacramento, California.

Source: Calstrs

Updated on

The California State Teachers’ Retirement System sold more municipal debt for a new office building, with yields on some maturities lower than that on benchmark debt, despite the shift to remote work.

The public pension, the second biggest in the nation, offered $15.7 million in tax-exempt bonds Wednesday with yields ranging from 2.27% to 4.11% for a 4% coupon bond due in 2049, according to data compiled by Bloomberg. It was the fund’s second foray into the municipal market since it sold $272.6 million of tax-free debt in 2019 for the project.