Getting your player ready...
How much faith do you have in Arnold?
California’s budget woes have grown so dire that the state issued IOUs to some contractors. Moody’s recently cut its credit rating close to junk status, and investors of Golden State-issued bonds wonder if they’ll also get stuck with IOUs.
But some strategists say that makes California bonds look like good buys. BlackRock managers say the state’s general-obligation bonds are second in line for payment, after only the public school system, based on its state constitution. That protection, plus yields around 5 percent to 6 percent, make them look attractive, they say.
