NJ Covid Bonds (5) Issue Details

According to the EMMA website New Jersey is planning to borrow up to $6 billion to keep the lights on. #muniland

Though there is still no Official Statement we now have the Issue Details on the GO Emergency BDS 2020A (NJ) dated 11/24/2020:

A coupon is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Assuming semiannual payments of the coupon here is my estimate of how much this bonding will eventually cost:

5 responses to this post.

  1. Posted by NJ2AZ on November 19, 2020 at 10:51 am

    hey i’m sure the state’s economy will grow enough from this “investment” that these payments will seem like nothing! 🙂

    Reply

  2. Posted by Rex the Wonder Dog! 🐶🐶🐶🦴🦴🦴 on November 19, 2020 at 11:46 am

    The true yield after a cash-flow BK= 0.0%.

    BUT, it could be worse, NJ could be CT:
    “In fact, according to a new analysis from Moody’s Analytics, Connecticut has the highest debt-obligation ratio of any state, allocating 31 percent of state revenues to bond, pension and retiree health obligations.
    YIKES!!!!!! 31 % 😂😂😂 That # is shocking, I mean shocking.
    https://www.greenwichtime.com/opinion/article/Opinion-Lamont-must-reform-unsustainable-public-15733491.php

    Reply

  3. […] ever-vigilant BuryPensions blog has provided valuable information on NJ’s COVID bonds – the $4.5 billion that Gov. […]

    Reply

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