California, Once Compared to Greece, Is Now Trading Better Than AAA
Seven years ago, California was “the next Greece." Today, the state’s bonds are trading better than AAA. As the Golden State benefits from record-breaking stock prices, Silicon Valley’s boom and a resurgent real estate market, demand for tax-exempt debt in the state with the highest top income tax rate in the U.S. is “insatiable," said Nicholos Venditti, a portfolio manager for Thornburg Investment Management. Spreads are so tight that Venditti has stopped buying California bonds for his national fund.