What type of bonds is Southern California Gas issuing?

Southern California Gas is issuing 5 3/4% first mortgage bonds, which typically indicates a secured debt instrument backed by the assets of the company. These bonds tend to appeal to investors looking for stable income through interest payments, usually based on the company's creditworthiness and the yield offered relative to prevailing market rates.

In this case, the specific percentage of 5 3/4% suggests that it provides a competitive return compared to other offerings in the market at that time. First mortgage bonds are often considered to have a lower risk due to the secured nature of the debt, as they are backed by the company's physical assets. As interest rates fluctuate, the coupon rate on these bonds can be an essential factor for investors when assessing their fixed-income portfolio options. This 5 3/4% rate reflects the current economic conditions and funding needs of Southern California Gas, catering to both their financial strategy and investors’ yield requirements.