The State of California General Obligation Bonds

We are pleased to announce that Fidelity Capital Markets has been chosen as a co-manager for the State of California's upcoming $2.4 billion1 General Obligation bond sale.

What is the opportunity?

The State of California (the "State") is issuing its $2.4 billion1 General Obligation Bonds for the purpose of paying all or a portion of the costs of various State projects, to refund certain outstanding bonds and to pay certain costs of issuing the 2017 Bonds.

The 2017 Bonds are direct general obligations of the State to which the full faith and credit of the State are pledged to pay principal and interest on the 2017 Bonds when due.

These bonds are rated "Aa3" by Moody's and "AA-" by S&P.2

Traditionally, municipal bonds will be subject to optional call features, and term bonds will generally have a Mandatory Sinking Fund feature. Please review the structure on the day of the pricing before placing an order.

Key benefits

The bond sale offers attractive benefits to individual investors including prices and yields that match those available to institutional investors and the potential for stable income through the call dates. And, for California residents, federal and state tax-exemption on the bond coupon payments.

How to place an order

The offering is expected to price the week of March 6,1 although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders onlineLog In Required or by calling a Fidelity representative at 800-544-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity AlertsLog In Required  and see our Municipal Bond New Issue Offerings.

Additional resources

Municipal Bonds
Review the risks and benefits of investing in municipal bonds.

California State Treasurer
Learn more about how to invest in California bonds and notes.

Municipal Bonds: Understanding Credit Risk (PDF)
In this SEC investor bulletin, learn more about assessing credit risks when purchasing municipal bonds.

MSRB—Risks and opportunities of interest rate movements (PDF)
Read about the impact of market interest rate movement on municipal bond prices and yields from the MSRB Education Center.