AboutTeamNewsContact
Pershing accessClient Login
November 15, 2010

CNN Money: Kenneth Naehu Quoted in “California Kicks Off $14 Billion Debt Sale”

“California Kicks Off $14 Billion Debt Sale,” by Hibah Yousuf, CNN Money.

“About 75% of all new issues are being bought by individual investors, who are more sensitive to headlines in the news that suggest cities and states are in deep fiscal trouble, so we could see more volatility going forward,” said Kenneth Naehu, managing director and head of fixed income at Bel Air Investment Advisors.

Naehu said that while municipal bonds are no longer in their “golden age,” and default risk for cities and states will rise, the majority of high-grade municipals are safe bets.

“We hear news that suggests that California could get to a point where they don’t pay you because of a very large deficit, but that’s pretty far from the truth,” he said. “Bond holders in California are second in line to education, and that typically means the state has eight times the amount it needs to make debt payments.”

Click Here to read full article.