A Mess in the Muni Market

Barron's reports:

The state of California has $1.75 billion of letters of credit up for renewal in the second half of 2009 and $91 million of VRDOs that found no buyers and were put to the banks. The state has also paid 7% to 10% on its $1.3 billion of commercial paper in the past two months. That rate is usually 1% to 2%.