California – not so free anymore!
It now costs more to insure California’s debt than Russia’s
There’s a rather technical piece published recently on Bloomberg.com about the cost of insuring debt in a number of countries.
Eleven years after Russia defaulted, investors want less to insure its debt than California’s. “This would have been impossible to imagine a year ago,” said Dimitry Sentchoukov, an emerging-market credit strategist at Dresdner Kleinwort in London.
Will the last person leaving the sunshine State, please close the door!
By Paul Handover