Sunday, March 01, 2009

Recordnet.com: Bankruptcy talk derails city bond sale

Recordnet.com: Bankruptcy talk derails city bond sale: "STOCKTON - The city was trying to sell $31 million in bonds last week when, in an unrelated meeting of the City Council's budget and finance committee, Councilman Dale Fritchen brought up bankruptcy.

It made the news the next day, and investors who were prepared hours earlier to buy Stockton bonds at an average interest rate of just less than 7 percent became skittish, perceiving an increased risk and demanding a higher rate of return."

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Yes, that would tend to depress the market for buying the city's bonds.

1 comment:

Anonymous said...

Loose lips sink ships.