Investors demanded yields typical of junk-rated debt to buy investment-grade bonds backed by luxury taxes in Atlantic City in a sign of the cost of the seaside community’s downward financial spiral.
New Jersey’s Casino Reinvestment Development Authority, created in 1984 to spur economic development and job creation in the resort town, issued $241 million of debt Oct. 21 that had investment grades from four credit raters, data compiled by Bloomberg show. Bonds maturing in November 2044 priced to yield 4.69 percent, compared with 3.97 percent for a benchmark index of similarly rated bonds, the data show.
