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VOL. 3, NO. 3

Published March 21, 2017

IN THIS EDITION:

Treasurer Chiang’s 2017 Legislative Agenda

Fighting bank fraud, easing burdens on indebted student loan borrowers and shining light on local government bond sales top State Treasurer John Chiang’s 2017 legislative agenda. Read more

California Job Tracker: California’s Jobless Rate Falls to Decade Low

January’s jobs report showed that California recorded its lowest unemployment rate since April 2007 with a number of 5.1%.  Read more

Innovation is California’s Winning Hand

Many analysts and policymakers are attempting to understand how California can be such a high-tax, high-regulation state, but still be among the leaders in economic growth and job creation. Read more

Intersections: A monthly go-to for reliable facts and analysis about California's debt, investments and economy

Treasurer Chiang’s 2017 Legislative Agenda

Fighting bank fraud, easing burdens on indebted student loan borrowers and shining light on local government bond sales top State Treasurer John Chiang’s 2017 legislative agenda. Read more right arrow to read more

Head to Head: Should ACA be repealed?

In the latest installment of Head to Head, Peter Lee, Executive Director of Covered California, and Jon Coupal, president of the Howard Jarvis Taxpayers Association, discuss the Affordable Health Care Act and health insurance in California. Read more right arrow to read more

WHAT DOES IT COST FOR
CALIFORNIA TO BORROW?

Benchmark

3.01%

Representative yield for 20-year, AAA-rated general obligation bonds, according to a major national market benchmark. (as of 1/22/17)

Current

3.28%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 1/22/17)

One Year Ago

2.68%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 2/22/16)

For every $1 billion in bonds issued, CA will pay $27.3 million more in debt service over a 20-year period than a AAA-rated borrower.

All indicators reflect yields-to-call on bonds with 5% coupons and 10-year call options. Source: Municipal Market Data, licensed and used with permission.
CALIFORNIA'S CURRENT GENERAL
OBLIGATION CREDIT RATINGS

FITCH

AA-

MOODY'S

Aa3

S&P

AA-

Read More About California’s Credit Ratings right arrow to read more
DEBT ISSUANCE

 

JANUARY 2017

JANUARY 2016

Statewide

up arrow to indicate a increase $4.396 billion

down arrow to indicate a increase $3.873 billion

State of CA

up arrow to indicate a decrease $0.230 billion

up arrow to indicate an increase $0.777 billion

Source: CA Debt and Investment Advisory Commission

Read More About Debt Issued So Far This Year right arrow to read more

DebtWatch: A Powerful Way of Exploring Debt in CA right arrow to read more

See The Calendar of Issues right arrow to read more
TREASURER'S OFFICE HIGHLIGHTS

$5.2 Billion

In Savings From Bond Refinancings Conducted by Treasurer Chiang Since January 2015

Upcoming Bond Sales Calendar right arrow to read more
INVESTMENTS

POOLED MONEY INVESTMENT ACCOUNT (PMIA)
 

AS OF 1/31/17

AS OF 1/31/16

Ending Portfolio

up arrow to indicate an increase $73.8 billion

$65.3 billion

Average Effective Yield

up arrow to indicate an increase 0.75 percent

0.45 percent

Average Investment Life

down arrow to indicate a decrease 180 days

167 days

LOCAL AGENCY INVESTMENT FUND (LAIF)
 

AS OF 1/31/17

AS OF 1/31/16

Ending Portfolio

up arrow to indicate an increase $22.6 billion

$21.3 billion

Participating Agencies

down arrow to indicate a decrease 2,451

2,470

AVERAGE MONTHLY YIELD COMPARISON-JANUARY


PMIA

0.751%

S&P GOV'T INVESTMENT POOLS

0.810%

FEDERAL FUNDS
RATE

0.646%

Source: State Treasurer’s Office

Read More About PMIA right arrow to read more

Read More About LAIF right arrow to read more