VOL. 2, NO. 1

Published January 12, 2016

IN THIS EDITION:

Treasurer's Office Looks Towards More Funding, Innovation, Transparency and Accountability for 2016

Making cars and airplanes has been part of California's manufacturing DNA since the 1920s. Dozens of plants located across the Golden State created steady, solid, middle-class jobs for tens of thousands of skilled workers. right arrow to read more

California Job Tracker

California's job market scored a major coup in November with Sacramento joining the metropolitan areas that have fully recovered all of the jobs lost during the recession. right arrow to read more

Guest Column: Much Ado About the Federal Funds Rate

It finally happened. The Federal Reserve decided to raise the Federal Funds Rate by a quarter of a percent at their December meeting. right arrow to read more

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

Treasurer�s Office Looks Toward More Funding, Innovation, Transparency and Accountability for 2016

Making cars and airplanes has been part of California�s manufacturing DNA since the 1920s. Dozens of plants located across the Golden State created steady, solid, middle-class jobs for tens of thousands of skilled workers. Unfortunately, the bonanza, while prolonged, petered out. Read more right arrow to read more

WHAT DOES IT COST FOR CALIFORNIA TO BORROW?
2.6% Representative yield for 20-year, AAA-rated general obligation bonds, according to a major national market benchmark. (as of 12/22/15)	2.8% Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 12/22/15)	3.0% Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 12/22/14)
For every $1 billion in bonds issued, CA will pay $12.7 million more in debt service over a 20-year period.
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.

WHAT DOES IT COST FOR
CALIFORNIA TO BORROW?

2.6%

Representative yield for 20-year, AAA-rated general obligation bonds, according to a major national market benchmark. (as of 12/22/15)

2.8%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 12/22/15)

3.0%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 12/22/14)

For every $1 billion in bonds issued, CA will pay $12.7 million more in debt service over a 20-year period.

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 A+	MOODY'S Aa3	S&P AA-
Read More About California’s Credit Ratings

CALIFORNIA'S CURRENT GENERAL
OBLIGATION CREDIT RATINGS

FITCH

A+

MOODY'S

Aa3

S&P

AA-

DEBT ISSUANCE
	NOVEMBER 2015	NOVEMBER 2014
Statewide	$3,789 million	$4,195 million
State of CA	$1,259 million	$1,465 million
Source: CA Debt and Investment Advisory Commission
Read More About Debt Issued So Far This Year DebtWatch: A Powerful Way of Exploring Debt in CA See The Calendar of Issues

TREASURER'S OFFICE HIGHLIGHTS
$2.5 Billion In Taxpayer Benefits From Refinancings Orchestrated by Treasurer Chiang in 2015
Upcoming Bond Sales Calendar

TREASURER'S OFFICE HIGHLIGHTS

$2.5 Billion

In Taxpayer Benefits From Refinancings Orchestrated by Treasurer Chiang in 2015

Upcoming Bond Sales Calendar right arrow to read more

INVESTMENTS
POOLED MONEY INVESTMENT ACCOUNT (PMIA)
	AS OF 11/30/15	AS OF 11/30/14
Ending Portfolio	$65 billion	$60 billion
Average Effective Yield	0.37 percent	0.26 percent
Average Investment Life	183 days	191 days
LOCAL AGENCY INVESTMENT FUND (LAIF)
	AS OF 11/30/15	AS OF 11/30/14
Ending Portfolio	$19.4 billion	$18.8 billion
Participating Agencies	2,474	2,520
AVERAGE MONTHLY YIELD COMPARISON-NOVEMBER
PMIA 0.374%	S&P GOV'T INVESTMENT POOLS 0.270%	FEDERAL FUNDS RATE 0.125%
Source: State Treasurer�s Office
Read More About PMIA Read More About LAIF