Friday, January 14, 2011

Fairfield, California

I see that some pension obligation bonds are available with a yield to worst of 8.603%--for S&P A-rated bonds (CUSIP 30421VAY5).  I'm guessing that this extraordinary return is because Fairfield, California is in some unusual level of financial trouble, even for a California government.  I can't find anything specific about Fairfield, and the official statement gives all the standard boilerplate.

3 comments:

William said...

We live nearby, have friends who live and work there. Huge number of lovely vacant homes, city services worsening by the day. Probably typical of much of Northern California on the I-80 corridor.

Regards, Old Coot

Ellsworth St. North said...

The same firefighters' union that helped drive Vallejo into bankruptcy (and Rio Vista nearly so) also represents the firefighters in Fairfield.

Epsilon Given said...

I'm kindof interested in testing Blackstone's Common Law Homesteading tradition: move into a place, live there for twenty five years uncontested, and it's yours!

The problem is that it seems that all the places with empty, clearly abandoned homes are places I wouldn't want to try to move to...