As one of the largest states in economic prowess and population, it stands to reason that California is one of the largest issuers of municipal debt. As such, it features prominently in many national municipal bond funds. At the same, as a high tax state, California munis are a top draw for investors living within the Golden State’s borders. So, when concerns about California’s finances creep into the news, it makes sense that investors get nervous.
But they may not have anything to worry about.
California is on some of the surest footing in decades. A hefty rainy day fund, high tax receipts and other factors make it an ideal destination for muni investors. Whether that be those who reside in-state or out of state.
dividend.com
by Aaron Levitt
Nov 21, 2023