CA $4 billion Revenue Anticipation Notes

[Disappointed]

Anybody buying?

mP

 

[ziggy29]

"Revenue Anticipation Notes"?

How is that different than an IOU?

 

[FinanceDude]

"Revenue Anticipation Notes"?

How is that different than an IOU?

Isn't that long for "RAN", or: "the govt took my money and RAN away"??

 

[laurence]

What's the yield? I think it's as safe as anything but a T-bill nowadays.

 

[Disappointed]

3.75% for 05/22/09
4.25% for 06/22/09


Risk/Reward?

mP

 

[Rustic23]

I was told that Harris County Tx has used Revenue Anticipation Notes for years. At the start of each year they float the notes at some rediculous small interest rate. They actually made money on the investment, then when the tax revenues come in the note is paid off and it starts over again.

 

[brewer12345]

Curious: how are these different from GO bonds?

 

[Rustic23]

"If the notes are to be paid from specific taxes due in the near future, they usually are called tax anticipation notes (TANs); if from anticipated intergovernmental revenue, they are called revenue anticipation notes (RANs). If the notes are to be paid from long-term borrowing (e.g., bonds), they are called bond anticipation notes (BANs). Tax anticipation notes and revenue anticipation notes are often grouped together and referred to as tax and revenue anticipation notes (TRANs)."


Found this from an online source. TRAN's are hooked to a specific TAX i.e. I believe Harris County's are tied to the property tax for the coming year. Where Bonds are usually long term and not tied to a specific tax. To the investor I am not sure if there is a difference. I don't know if TRAN's have a tax advantage that bonds do.

 

[Disappointed]

They sold 1.5B today.
Early bond offering sells $1.5B Tuesday - Sacramento Business Journal:

We need bond experts on this board to give us some ideas?

mP