University of California 40-Year Debt Reflects State Budget Woes

Source: businessweek.co Posted By: brad S...5209 days ago

The University of California, which slashed half a billion dollars from its 2010 budget through job cuts and furloughs, is offering $520 million in taxable Build America Bonds today as borrowing costs for issuers in the state rose to a one-month high.

The extra yield investors demand to hold general-obligation debt from California issuers instead of top-rated tax-exempts was 110 basis points yesterday, the highest since Aug. 18, according to Bloomberg Fair Market Value data. A basis point is 0.01....

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