Clean water. High-speed rail. Children’s hospitals. Coastal Protection.
These are some of the critical projects that the state of California is funding next week as part of one of its regular General Obligation bond sales. You can support these projects by investing in California bonds with Neighborly.
As well as enabling you to support critical infrastructure that you and your Neighbors rely on, your investment will also earn you interest that is exempt from federal taxes, and – if you’re a California resident – may also be exempt from state taxes too.
Are you an investment adviser who buys bonds on behalf of clients? Let’s talk.
How to invest
On Monday, all U.S. residents buying as an individual or on behalf of individual clients can head to neighborly.com/california to place an order for bonds, without a managerial or other transaction fees that many others charge.
Are you reading this on Monday August 28? Invest in California now.
In order to complete your investment, you’ll need to create a brokerage account with Neighborly. Learn more about that process on our Support Center.
For the past week we’ve been running an Open Book bidding process to enable potential investors like you to express interest in certain bonds and name the minimum interest rate (yield) they’re willing to accept.
Thanks to your participation, we received $1.86 million in bids – here’s a rundown of the most popular maturities and the median yields at each. We saw the most bids for the 1 and 2 year bonds (2018 and 2019), and the 30-year bonds (2047). Bids are open until midnight PST on Sunday August 27.
As you can see, there were some kinks in the pricing people demanded! These yields are of course just an indicator, but we’re hoping that as Neighbors become more used to the Open Book bidding process, we’ll see bids cluster around market rates.
These bids are non-binding, but help to increase transparency and deliver a better investing experience for all investors. Thank you for supporting that effort! We look forward to making the Open Book bidding process available on more issuances in the near future.
Open Book Bids for California bonds
* Most popular maturities
Source: Neighborly data at 4pm PST on 08/25/17 and Bloomberg data on 08/23/17.
The Bloomberg BVAL California curve represents the yield curve for tax-exempt general obligation securities issued by the individual state. The yield curve is built using a non-parametric fit of market data obtained from the MSRB, new issues calendars, and other proprietary contributed prices.
How Neighborly is working for California
Neighborly was appointed to the State of California’s underwriting pool earlier this year, making us the youngest firm currently serving the State by far – alongside some of the largest financial institutions in the world.
We’ve written in the past about how California has been making steps towards making bonds more accessible to everyone, and we’re excited to have the opportunity to provide individuals and investment advisors direct access to new issue California bonds. Join us and invest in the Golden State today.