San Francisco Boom Belied by Year’s Biggest Losses: Muni Credit – Bloomberg 06-18-13

Salient to Investors:

San Francisco added 300 tech companies since 2010, helping it earn its highest credit grade in more than a decade, amid the worst losses this year in municipal bonds and with interest rates on munis at a 15-month high.

San Francisco’s jobless rate is the lowest since 2008 and RealtyTrac said prices on non-distressed properties reached a median of $857,500 in May, higher than at the height of the housing bubble in 2006.

Individuals, who own 70 percent of munis directly or through funds, withdrew the most funds last week in 2013.

CBRE said San Francisco was home to 1,846 tech companies in Q3, 2012 versus 1,517 in Q4 2010.

The Working Group on California Earthquake Probabilities in 2008 estimated a 63 percent chance that one or more quakes of magnitude 6.7 or higher will strike the Bay Area before 2038.

Read the full article at http://www.bloomberg.com/news/2013-06-18/san-francisco-boom-belied-by-year-s-biggest-losses-muni-credit.html

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