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VOL. 3, NO. 2

Published February 16, 2017

IN THIS EDITION:

Green Bonds: A New Path to Curb Climate Change

There is no better time than now to talk about climate change and what we can do to head off an onrushing existential disaster.Read more

California Job Tracker: California Scores Another Solid Job Gain in 2016

California closed out 2016 with a job gain of 332,000 for the total year. That brings the job gain since 2010 when the recovery began to 2.4 million.Read more

Reforming the ACA: Losing the Forest for the Trees

Californians are right to be worried about the future of the Affordable Care Act now that Republican’s control both branches of Congress and the White HouseRead more

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

Green Bonds: A New Path to Curb Climate Change

There is no better time than now to talk about climate change and what we can do to head off an onrushing existential disaster. Read more right arrow to read more

Head to Head: President Trump’s Immigration Orders

In the latest installment of Head to Head, Assembly Speaker Anthony Rendon and Ben Boychuk, managing editor of American Greatness, discuss the protection of "sanctuary cities" in California. Read more right arrow to read more

WHAT DOES IT COST FOR
CALIFORNIA TO BORROW?

Benchmark

2.95%

Representative yield for 20-year, AAA-rated general obligation bonds, according to a major national market benchmark. (as of 1/23/17)

Current

3.22%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 1/23/17)

One Year Ago

2.68%

Representative yield for 20-year, CA general obligation bonds, according to a major CA market benchmark. (as of 1/22/16)

For every $1 billion in bonds issued, CA will pay $24.8 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

 

DECEMBER 2016

DECEMBER 2015

Statewide

up arrow to indicate a decrease $4.821 billion

down arrow to indicate a increase $4.888 billion

State of CA

up arrow to indicate a decrease $1.148 billion

up arrow to indicate an decrease $1.464 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

$4.9 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 12/31/16

AS OF 12/31/15

Ending Portfolio

up arrow to indicate an increase $73.7 billion

$65.6 billion

Average Effective Yield

up arrow to indicate an increase 0.72 percent

0.40 percent

Average Investment Life

down arrow to indicate a decrease 171 days

179 days

LOCAL AGENCY INVESTMENT FUND (LAIF)
 

AS OF 12/31/16

AS OF 12/31/15

Ending Portfolio

up arrow to indicate an increase $21.6 billion

$20.3 billion

Participating Agencies

down arrow to indicate a decrease 2,461

2,479

AVERAGE MONTHLY YIELD COMPARISON-DECEMBER


PMIA

0.719%

S&P GOV'T INVESTMENT POOLS

0.740%

FEDERAL FUNDS
RATE

0.539%

Source: State Treasurer’s Office

Read More About PMIA right arrow to read more

Read More About LAIF right arrow to read more