Ok, it might be a little much to suggest that there’s another gold rush going on in California. But investors did flock to the state’s latest municipal bond offering and they did so in such a way – like New Jerseyans queueing up days before tickets for a Bruce Springsteen concert go on sale – that California raised the size of its offering by 25%.
This speaks in part to how investors, individuals in particular, don’t believe California will default any time soon – as colleagues Kelly Nolan and Jodi Xu noted in a story today, the state does have a $20 billion budget hole. But perhaps more so, it speaks to how investors in general are wiling to take on some risk – call it measured risk.
