Jan 4, 2009

Your state's credit rating

Where does your state fall on the credit rating scale? Interesting that the east coast has a string of AAA ratings, while the west has a cluster of states with no general obligation government bonds at all (those appear to be the states with low population densities). Also noteworthy: states can't declare bankruptcy, while cities and municipalities can. Yields on munis have certainly become more attractive, but I'd look to GO bonds over revenue bonds tied to a specific source of income (they lack the full faith and credit of the governmental entity). From an article in Fortune.

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