California Junk Bonds (6.66%)

[Bill Bowden]

California’s fiscal crisis pushed yields on tax-backed debt to a four-
year high as the state struggles with a $42 billion budget deficit

California general-obligation bonds maturing in 2038, with a stated
interest rate of 5.25 percent, traded at 81.9 cents on the dollar to
yield about 6.66 percent, according to the Municipal Securities
Rulemaking Board. That’s 1.57 percentage points more than three months
ago.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aiY_niAijUgM&refer=home

-Bill

[Bill Bowden]

[honeybee]

Thanks for this info, Bill. This is an amazingly high interest rate
for GO's....

I hope this doesn't mean California is going to bite the dust. 8(

> http://www.bloomberg.com/apps/news?pid=20601087&sid=aiY_niAijUgM&refe...
>
> -Bill

[Bill Bowden]

Here's a good one. Not sure I understand it. Says it pays 9.23% and
matures in year 2047. What am I missing?.

https://trading.fast-trade.com/fmsbonds/bondorder.do?brokerageId=10&offeringId=10413

CUSIP 38122NPA4
State CA
Ratings Baa3 / BBB

Quantity Available 130
Price 62.302
Yield to Maturity 9.40
Current Yield 9.23

-Bill

[honeybee]

YIKES! I don't know what you are missing. That's what it says! But I
would sure be cautious and check with your broker to be sure it is
legit. You know what they say about something that sounds to good to
be true.

Let us know what you find out. We could all put our money there and be
in the cat-bird seat. 8-)

On Jan 19, 12:48 am, Bill Bowden <wrongaddr...@att.net> wrote:
> On Jan 18, 12:49 pm, honeybee <mshoneyr...@hotmail.com> wrote:
>
>
>
>
>
> > Thanks for this info, Bill. This is an amazingly high interest rate
> > for GO's....
>
> > I hope this doesn't mean California is going to bite the dust.  8(
>
> > On Jan 18, 1:24 am, Bill Bowden <wrongaddr...@att.net> wrote:
>
> > > California’s fiscal crisis pushed yields on tax-backed debt to a four-
> > > year high as the state struggles with a $42 billion budget deficit
>
> > > California general-obligation bonds maturing in 2038, with a stated
> > > interest rate of 5.25 percent, traded at 81.9 cents on the dollar to
> > > yield about 6.66 percent, according to the Municipal Securities
> > > Rulemaking Board. That’s 1.57 percentage points more than three months
> > > ago.
>
> > >http://www.bloomberg.com/apps/news?pid=20601087&sid=aiY_niAijUgM&refe...
>
> > > -Bill
>
> Here's a good one. Not sure I understand it. Says it pays 9.23% and
> matures in year 2047. What am I missing?.
>

> https://trading.fast-trade.com/fmsbonds/bondorder.do?brokerageId=10&o...

>
> CUSIP           38122NPA4
> State            CA
> Ratings         Baa3  / BBB
>
> Quantity Available      130
> Price                   62.302
> Yield to Maturity       9.40
> Current Yield           9.23
>

> -Bill- Hide quoted text -
>
> - Show quoted text -

[honeybee]

YIKES! I don't know what you are missing. That's what it says! But I
would sure be cautious and check with your broker to be sure it is
legit. You know what they say about something that sounds to good to
be true.

Let us know what you find out. We could all put our money there and be
in the cat-bird seat. 8-)

On Jan 19, 12:48 am, Bill Bowden <wrongaddr...@att.net> wrote:
> On Jan 18, 12:49 pm, honeybee <mshoneyr...@hotmail.com> wrote:
>
>
>
>
>
> > Thanks for this info, Bill. This is an amazingly high interest rate
> > for GO's....
>
> > I hope this doesn't mean California is going to bite the dust.  8(
>
> > On Jan 18, 1:24 am, Bill Bowden <wrongaddr...@att.net> wrote:
>
> > > California’s fiscal crisis pushed yields on tax-backed debt to a four-
> > > year high as the state struggles with a $42 billion budget deficit
>
> > > California general-obligation bonds maturing in 2038, with a stated
> > > interest rate of 5.25 percent, traded at 81.9 cents on the dollar to
> > > yield about 6.66 percent, according to the Municipal Securities
> > > Rulemaking Board. That’s 1.57 percentage points more than three months
> > > ago.
>
> > >http://www.bloomberg.com/apps/news?pid=20601087&sid=aiY_niAijUgM&refe...
>
> > > -Bill
>
> Here's a good one. Not sure I understand it. Says it pays 9.23% and
> matures in year 2047. What am I missing?.
>

> https://trading.fast-trade.com/fmsbonds/bondorder.do?brokerageId=10&o...

>
> CUSIP           38122NPA4
> State            CA
> Ratings         Baa3  / BBB
>
> Quantity Available      130
> Price                   62.302
> Yield to Maturity       9.40
> Current Yield           9.23
>

[Pig]

<<<ROAR>>>

You could get banned for this!

[Bill Bowden]

On Jan 19, 9:00 am, honeybee <mshoneyr...@hotmail.com> wrote:
> YIKES! I don't know what you are missing. That's what it says! But I
> would sure be cautious and check with your broker to be sure it is
> legit. You know what they say about something that sounds to good to
> be true.
>
> Let us know what you find out. We could all put our money there and be
> in the cat-bird seat. 8-)
>

Well, one problem is I'll be dead in the year 2047, so I'll have to
sell early, or let my relatives fight over it. But I''ll send an email
to Charles Schwab to see what they think. Will let you know what I
find out.

[octavian]

---I don't even know what bond you're talking about, but I do know
that locking up money for almost 40 years at 9+% will prove to be a
big mistake if we actually get the runaway inflation that many are
talking about. Who knows what rates will be 10, 20, 30 years from now--
or even 2 years from now?

On Jan 18, 10:48 pm, Bill Bowden <wrongaddr...@att.net> wrote:
> On Jan 18, 12:49 pm, honeybee <mshoneyr...@hotmail.com> wrote:
>
>
>
>
>
> > Thanks for this info, Bill. This is an amazingly high interest rate
> > for GO's....
>
> > I hope this doesn't mean California is going to bite the dust.  8(
>
> > On Jan 18, 1:24 am, Bill Bowden <wrongaddr...@att.net> wrote:
>
> > > California’s fiscal crisis pushed yields on tax-backed debt to a four-
> > > year high as the state struggles with a $42 billion budget deficit
>
> > > California general-obligation bonds maturing in 2038, with a stated
> > > interest rate of 5.25 percent, traded at 81.9 cents on the dollar to
> > > yield about 6.66 percent, according to the Municipal Securities
> > > Rulemaking Board. That’s 1.57 percentage points more than three months
> > > ago.
>
> > >http://www.bloomberg.com/apps/news?pid=20601087&sid=aiY_niAijUgM&refe...
>
> > > -Bill
>
> Here's a good one. Not sure I understand it. Says it pays 9.23% and
> matures in year 2047. What am I missing?.
>

> https://trading.fast-trade.com/fmsbonds/bondorder.do?brokerageId=10&o...

>
> CUSIP           38122NPA4
> State            CA
> Ratings         Baa3  / BBB
>
> Quantity Available      130
> Price                   62.302
> Yield to Maturity       9.40
> Current Yield           9.23
>

[honeybee]

Did I really post that twice? LOL! I'll delete one of them.

[Pig]

On Jan 19, 8:47 pm, honeybee <mshoneyr...@hotmail.com> wrote:

> Did I really post that twice?  LOL! I'll delete one of them.

Too late. You ARE banned for double posting, and for being my
friend! :---)

[Bill Bowden]

On Jan 19, 6:11 pm, octavian <miscrean...@webtv.net> wrote:
> ---I don't even know what bond you're talking about, but I do know
> that locking up money for almost 40 years at 9+% will prove to be a
> big mistake if we actually get the runaway inflation that many are
> talking about. Who knows what rates will be 10, 20, 30 years from now--
> or even 2 years from now?
>

Who cares what rates are 40 years from now? I'll be dead by then.
Anyway, here are some attractive CA bond offerings yielding 10%+ and
you don't have to lock up your money, since the bond can be sold on
the secondary market anytime before it matures which gets you out. You
could buy it today and sell it tomorrow for a small gain or loss. The
only question is where rates will go after you buy it, and what you
might get later when you sell, plus interest you might get.

Even Bob Brinker loves California bonds, and said today he couldn't
imagine the state of California going broke without the Fed bailing
them out, so how can we lose on a nice secure 10%+ California bond?

A few bond CA offerings from:

https://www.bonddesk.com/zd/owa/pkg_result_input_bond.input

But the result page is not postable. You have to enter the details.

Example yields 10%+ are:

CA Western Hills Wtr Dist YTM 10
CA Fontana (City Of) YTM 9.5
CA Imperial Calif Tax Callable YTM 10
CA Calexico Calif Cmnty Facs, Callable YTM 10
CA Merced Calif Spl Tax, Callable YTM 10
CA California Infrastructure, Callable YTM 11.655

I like the last one at 11.655%

-Bill

[bigleagueblogger]

"...Even Bob Brinker loves California bonds, and said today he

couldn't imagine the state of California going broke without the Fed
bailing them out, so how can we lose on a nice secure 10%+ California

bond?..."

Hey Bowden, stay away from the bond market until you do your homework.

Brinker said bonds issued BY California were OK....not bonds issued IN
California.

You are looking a a bunch of high risk MUNICIPAL debt not California
GOs.

The risk on these things is extremely high and in many cases they are
revenue bonds so even your interest payments are solely dependent on
revenue from a particular project.

The default risk is very high and that's why the rates are so
high..did you ever hear of Orange County or Vallejo?

> > > - Show quoted text -- Hide quoted text -

[Bill Bowden]

On Jan 26, 7:12 am, bigleagueblogger <bigleagueblog...@gmail.com>
wrote:

> "...Even Bob Brinker loves California bonds, and said today he
> couldn't imagine the state of California going broke without the Fed
> bailing them out, so how can we lose on a nice secure 10%+ California
> bond?..."
>
> Hey Bowden, stay away from the bond market until you do your homework.
>
> Brinker said bonds issued BY California were OK....not bonds issued IN
> California.
>
> You are looking a a bunch of high risk MUNICIPAL debt not California
> GOs.
>
> The risk on these things is extremely high and in many cases they are
> revenue bonds so even your interest payments are solely dependent on
> revenue from a particular project.
>
> The default risk is very high and that's why the rates are so
> high..did you ever hear of Orange County or Vallejo?
>

Yes, I've heard of Orange County, been living here since 1976.

I can't seem to find a website listing state bonds issued by
California. Any links?

But I found a site for municipals at:

http://www.municipalbonds.com/archive/CA/

Or you can just use www.municipalbonds.com for the main page and then
select the desired state.

I see a nice zero coupon in Montana paying 11.5% with only one year to
go. But no Moody ratings listed. I think most are BBB or better.

-Bill