Cigarette sales decline, but tobacco bonds defy the odds
- Tobacco bonds continue to thrive despite declining smoking rates
- Cigarette sales have been in decline, with recent acceleration
- Tobacco companies agreed to pay $206 billion over 25 years to 52 U.S. states and territories
- Payments to states are now effectively payments in perpetuity
Cigarette sales have been on a decline, with the drop recently accelerating. However, tobacco bonds, backed by cigarette sales, continue to thrive. In the late 1990s, American tobacco companies agreed to pay $206 billion over 25 years to 52 U.S. states and territories in exchange for giving up future legal claims. These payments have been adjusted over the years due to more companies joining and lawsuits involving some states, but they are now effectively payments in perpetuity.
Public Companies: American tobacco companies (N/A)
Private Companies:
Key People:
Factuality Level: 7
Justification: The article provides some factual information about the decline in cigarette sales and the agreement between tobacco companies and U.S. states. However, it includes some unnecessary background information and tangential details about politicians and government spending. Overall, the article is mostly factual but could be more focused on the main topic.
Noise Level: 7
Justification: The article starts with a relevant topic about the decline in cigarette sales, but then goes off on a tangent about politicians and government spending. This information is not directly related to the main topic and adds unnecessary noise to the article.
Financial Relevance: Yes
Financial Markets Impacted: Tobacco companies
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification:
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