Bonds

Corporate and government debt issuance rose to a record $1.24 trillion worldwide in the first quarter as borrowers took advantage of low interest rates, data tracker Thomson Financial said Monday. However, the pace of borrowing -- much of it refinancing of higher-cost debt -- is expected to slow as war concerns weigh on markets and as many companies find they don't need additional capital. General Electric Co. was among borrowers that issued new debt in the first quarter.

The house built by bonds, Pacific Investment Management Co., launched three bond funds Tuesday, including an emerging market bond fund. The Pimco Emerging Markets Bond Fund, which is managed by Newport Beach-based Pacific Investment, will be offered to both retail and institutional investors. The fund will require a minimum investment of $1,000, says the Pimco Funds Distribution Co. Pimco has more than $99 billion in assets under management and is one of the largest bond managers in the U.S.

The stock and bond markets continue to show that they can be very scary places to put your money, at least in the short run. Even so, the line of people leaving the banks and S&Ls for stocks and bonds appears to be getting longer every day. Fed up with slim 5% to 6% returns on super-safe CDs and savings accounts, people who always thought of themselves as "savers" rather than "investors" are changing their minds.

California's bond rating was downgraded below that of every other state Tuesday by a major Wall Street rating agency, as lawmakers trying to resolve the state's financial problems faced growing resistance from powerful interest groups. Citing the state's prolonged budget impasse and its nearly empty treasury, Standard & Poor's lowered its rating on $46 billion in general obligation bonds, which investors usually consider one of the safest investments because they are backed by taxpayers.

In the latest bid to help California's overcrowded and deteriorating schools, leading lawmakers rushed Thursday to complete a plan for a record $22 billion in school construction bonds. They scrambled, as the Legislature headed toward adjournment, to fashion a bond issue proposal that would eclipse the record $9.2 billion voters approved just three years ago for school facilities.

Twelve days with Barry now and it's fair to assume we're not yet in the throes of Stockholm syndrome. We are, however, quite stricken with the Syndrome of the Bambino, like the better-known Curse but with more balls falling untouched into shallow left field. No, it is clear Barry identifies with few who aren't related to him or on his payroll, and, as a group, baseball writers identify with no one who would like to see us perish in a structural fire.

A $980-million bond measure to finance campus renovations and cope with expected state funding cuts was approved by the Los Angeles Community College District on Wednesday for inclusion on the May ballot. It would be the district's second bond proposition in just over two years. Voters, by a 67%-33% margin, approved $1.25-billion Proposition A in April2001.

The U.S. Treasury is promising a quick decision on whether to refer suspicious trading in the 30-year bond Wednesday morning to government lawyers after an investment consultant admitted telling clients the security was to be eliminated. Pete Davis said he informed clients based on a press briefing he attended Wednesday before public release of the news sparked the biggest rally in 14 years. The price on the benchmark Treasury bond rose from 1021/2 at 9:30 a.m.

Educators Wednesday interpreted the surprisingly decisive victory of Proposition 203, the $3-billion school and college construction bond, as heartening evidence of taxpayers' willingness to invest in public education. Similarly, observers said the passage of that measure, the largest bond issue in state history, and Proposition 192, which authorized $2 billion for strengthening bridges and overpasses, reflected voters' increased confidence in the state's economy.

Since the passage of Proposition BB, the Los Angeles Unified School District has been planning hundreds of improvements at its schools. In the San Fernando Valley, schools will receive $800 million in repairs funded by school bonds. All schools in the Valley will get security grills in addition to improvements in the areas of safety and technology, including networking for computers, security alarms and intercom systems.