If California were its own country, it would be one of the largest in population and GDP size. It’s also one of the largest issuers of municipal bonds. So, when anything potentially impacts its population, economic status, tax collection, or otherwise, muni investors take notice. And right now, they are taking notice in a big way.
The impact of the recent wildfires in several key California cities and regions is just starting to be known.
For current and would-be investors in the muni space, the question remains: what exactly will come from California bonds, and if the wildfire-insured volatility be an opportunity to bet big on the state’s reliance and its credits?
dividend.com
by Aaron Levitt
Feb 18, 2025