The State of California plans on issuing over $3 Billion worth of "IOUs" with a 3.75% yield as it wrangles with budget issues. This would mark only the second time since the Great Depression that the Golden State has issued such promise repayment notes (technically they are registered warrants).
Major banks are balking at accepting these IOUs, thus causing the SEC and other bodies to consider making them municipal-type securities that can be traded in secondary markets.
(image from hispanicbusiness.com)
Major banks are balking at accepting these IOUs, thus causing the SEC and other bodies to consider making them municipal-type securities that can be traded in secondary markets.
(image from hispanicbusiness.com)