Spreads have widened on California general obligation bonds in the secondary market, with retail investors the most frequent buyers.

A trader in Los Angeles said the secondary market has reacted to the news that Standard & Poor's placed California's A-rated GOs on Credit Watch with negative implications - but it has been tempered somewhat by the fact that "everybody knew it was coming."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.