Texas net rate of borrowing declines from previous years
Texas Insider Report: AUSTIN Texas The high demand for Texas notes is a reflection of the financial communitys confidence in our responsible conservative fiscal management" said Gov. Rick Perry earlier today crediting the strength of Texas economy for the high demand of the states sale of $9.8 billion in Tax & Revenue Anticipation Notes (TRANs) which drew approximately $31.6 billion in bids ... more than three times the amount Texas was offering.
Texas earned the highest possible ratings from Wall Street in anticipation of this offering receiving a rating of SP-1 by Standard & Poors MIG 1 by Moodys Investors Service and F1 by Fitch Inc.
Texas net interest rate of .27 is down from last years rate of .34 representing the states lowest net rate ever for these notes.
Whether bidding for TRANs or by expanding or relocating their businesses to the Lone Star State people know that Texas is a sound and smart investment" Perry said.
The short-term notes are sold every fiscal year to manage cash flow and to provide up-front payments to public schools. They are repaid within the fiscal year.
