California Taps Investors' Craving for Yield With Tobacco Bonds
- Tobacco debt beat the market four times in past five years
- Buyers snap up bonds after Trump rout as yields scarce
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California’s taking advantage of investors’ taste for tobacco.
Tobacco bonds are returning 10 percent this year, over seven times that of the municipal market as a whole, as buyers itching for yield pick up the securities and drive prices higher. California on Thursday plans to sell $619 million to refinance a portion of a deal from a decade ago.