(Bloomberg) -- Tax-exempt bonds backed by the 1998
national tobacco settlement had their worst monthly performance
in July since late 2005, prompting one borrower to shelve a
scheduled tobacco debt sale and another to sell its offering
sooner than planned on concerns of a further decline.
The extra yield, or spread, investors demand on benchmark
municipal tobacco bonds compared with top-rated municipal debt
widened by 35 basis points, the most in more than 18 months, to
124 basis points, A.G. Edwards Inc. said in a report. Puerto
Rico postponed its $238 million sale July 31, while California's
Riverside County sold a $295 million deal a week sooner than
planned. A basis point is 0.01 percentage point.
Read more at Bloomberg Bonds News
national tobacco settlement had their worst monthly performance
in July since late 2005, prompting one borrower to shelve a
scheduled tobacco debt sale and another to sell its offering
sooner than planned on concerns of a further decline.
The extra yield, or spread, investors demand on benchmark
municipal tobacco bonds compared with top-rated municipal debt
widened by 35 basis points, the most in more than 18 months, to
124 basis points, A.G. Edwards Inc. said in a report. Puerto
Rico postponed its $238 million sale July 31, while California's
Riverside County sold a $295 million deal a week sooner than
planned. A basis point is 0.01 percentage point.
Read more at Bloomberg Bonds News
No comments:
Post a Comment