California to sell $14bn in bonds

California is today set to begin debt sales of around $14bn (£8.7bn). The US state is the most obvious example of the financial worries facing local governments. The municipal bond market, once seen as a safe place to invest, is now seen as more risky. California’s decision to sell its debt comes after state governor Arnold Schwarzenegger called for advice on how to address the state’s deficit, which is predicted to be more than $25bn over the next 18 months.