Detroit’s bankruptcy has some investors fretting that the case will set a precedent for $1.1 trillion of U.S. general obligations. That hasn’t kept the debt from beating revenue bonds for the first time since 2010.
Only eight months ago, Bill Lockyer was the envy of California politicians. Undefeated in 39 years as assemblyman, senate leader, attorney general and treasurer, the Democrat won 5.4 million votes in his 2010 re-election, more than any other state official in the U.S.
California Treasurer Bill Lockyer, who never realized his ambition of governing the most-populous state, may remain a powerbroker after leaving office with $2.5 million in campaign funds and four decades in politics.
California plans to sell $12.5 billion in debt in the next 18 months after the most-populous state’s economic recovery helped reduce its relative borrowing costs to the lowest level in five years, Treasurer Bill Lockyer said.
Servicing California’s general-fund debt will take a smaller chunk of the state budget -- 7.7 percent -- this fiscal year compared with the 9.8 percent estimated in 2009 by Treasurer Bill Lockyer, who cited lower interest rates.