Bloomberg: Kenneth Naehu Quoted in “California `Budget Kabuki’ Increases Schwarzenegger Debt Costs”

"California `Budget Kabuki' Increases Schwarzenegger Debt Costs," by Michael B. Marois, Bloomberg.

“We’re waiting it out,” said Kenneth Naehu, a managing director at Bel Air Investment Advisors in Los Angeles. He manages almost $3 billion in municipal bonds.

“We don’t have to chase yield,” Naehu said yesterday in a telephone interview. “California general-obligations, if they get downgraded, could go 150 basis points over high grades versus 124 now.” A basis point is 0.01 percentage point.

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