List of California Municipal Bonds for Sale
This list of California municipal bonds for sale today uses Artificial Intelligence to address various aspects such as issuer reputation, investment potential, and the significance of the issuing entities. These 10 bonds are distinguished by their top-tier BondView ratings and credit assessments, which can indicate low default potential and robust fiscal health.
The report aims to guide investors in making more informed decisions.
Scroll to the right over the table for full view.
Why These Bonds Are a Good Investment
Stable and Attractive Yields: The yields on these bonds range from 2.81% to 2.92%, which is slightly below the market average for top-rated bonds but competitive, especially considering their safety and tax-exempt status, offering a valuable return compared to other fixed-income securities.
Quality of Issuers and Bond Ratings: The issuers of these bonds are primarily educational and utility districts, and development authorities in California. These entities are generally considered stable due to their essential nature and constant demand for their services. The Bondview ratings mostly stand at 5, indicating a moderate risk level, which is balanced by the relatively high BV credit scores (8-10), reflecting solid creditworthiness.
Maturity Dates and Duration Risk: The maturity dates for these bonds range from 2024 to 2035, providing a mix of short to medium-term investment options. This range allows investors to manage duration risk effectively – shorter maturities are less sensitive to interest rate changes, which is beneficial in a rising rate environment.
Coupon Rates: The coupon rates of 5% and 6% are notably higher than the current yields, suggesting that these bonds were issued when market rates were higher. This can be an advantage for investors, as it provides a higher periodic income.
Insurance and Additional Safety: One of the bonds (BAKERSFIELD CITY SCHOOL DISTRICT) is insured, providing an extra layer of safety. Bond insurance assures payment of principal and interest in case the issuer defaults, making it a safer investment.
Asking Price vs. Estimated Price: The asking prices of these bonds are relatively close to the Bondview estimated prices, indicating that they are reasonably priced in the current market.
These municipal bonds represent a balanced mix of safety, yield, and quality of issuers. They are suitable for investors seeking stable, tax-efficient income with a moderate risk profile. It’s always recommended for investors to consider their individual investment goals and risk tolerance, and possibly consult with a financial advisor before making investment decisions.
California | ESG Score: 6 | Cyber Security Score: B
This issuer has an Aa3 rating on its General Obligation Bonds, reflecting a large and growing economy, though constraints exist due to below-average resident income and high unemployment levels. The rating also considers the district’s healthy financial position, conservative budgeting practices, and elevated leverage and pension obligations. This rating suggests a strong investment potential, with the district exhibiting a stable financial performance.
Issuer Reputation: As a school district bond, it’s typically backed by the local tax base and reflects the financial health of the district. School district bonds are generally stable due to property tax support.
Investment Potential: These bonds are often considered a lower-risk investment, appealing to conservative investors seeking steady, albeit modest, returns.
Peralta Community College District
Issuer Reputation: Community college district bonds are generally considered stable due to their support from local tax revenues and state funding. They are often seen as financially solid due to their educational nature.
Investment Potential: Similar to the Bakersfield bond, it offers a modest yield with short-term maturity, indicating a relatively low-risk investment. These bonds typically offer moderate returns with a relatively low risk, making them attractive to investors seeking stability in the educational sector.
Ocean View School District, Orange County
Issuer Reputation: School districts in Orange County are typically well-regarded, with stable funding sources.
Investment Potential: This bond offers a slightly lower yield compared to the first two, but its stability is underscored by its market pricing.
Solano Community College District
Issuer Reputation: Community colleges in California generally have a good reputation, supported by state funding and local tax revenues.
Investment Potential: This bond’s longer maturity (2026) and similar yield suggest a stable, slightly longer-term investment. These bonds are usually considered safe, offering modest yields suitable for investors looking for stable, long-term investments in education.
California | ESG Score: 5 | Cyber Security Score: A
Issuer Reputation: This smaller school district’s reputation would depend heavily on its local economic conditions and fiscal management. It currently holds a stable outlook from Moody’s.
Investment Potential: The longer maturity (2035) offers a long-term investment opportunity, though with a slightly lower yield.
California Statewide Communities Development Authority
Issuer Reputation: This authority is known for financing community development projects, which can be subject to varying economic conditions.
Investment Potential: The short maturity (2024) and yield are indicative of a lower-risk, short-term investment.
Sacramento California Municipal Utility District Electric Revenue
Issuer Reputation: Utility districts typically have stable revenue streams, making their bonds relatively safe.
Investment Potential: Moderate yield and short-term maturity suggest a stable investment, typical for utility bonds. These bonds are often considered low-risk investments, suitable for conservative portfolios.
Midpeninsula Regional Open Space District
Issuer Reputation: Green bonds are increasingly popular, and this issuer focuses on environmental conservation, which might appeal to socially responsible investors.
Investment Potential: Short-term maturity with a moderate yield indicates a stable, socially responsible investment. These bonds could offer moderate returns and are attractive to investors interested in environmental sustainability.
Bay Area Water Supply and Conservation Agency
Issuer Reputation: Water supply and conservation agencies generally have stable revenue sources, making these bonds reliable.
Investment Potential: A short-term bond with a moderate yield, indicative of a stable investment in essential services.
City of San Diego’s Public Facilities Financing Authority – Water Revenue Bonds (79730C) & Direct Loans (CA)
Issuer Reputation: As a bond issued by a financing authority for water revenue, it’s backed by stable and essential service revenues.
Investment Potential: Offers a slightly lower yield with a short-term maturity, suggesting a low-risk investment profile.
For Investors & Analysts
Keep Your Broker Honest
Your broker may not reach out to you proactively about bonds for sale and may not know all your options. With BondView, you can rest assured that you have the same or better information than your broker.
Verify A Muni Bond Quote
Get an accurate price for a bond that your broker has pitched. Verify your own estimated price against its real-time asking price.
Gauge Ease Of Buying Or Selling A Bond
BondView provides 3 liquidity indicators in this report. See how in demand a bond is based on the funds that hold this bond and their buy/sell activity. Do the same for public and BondView portfolios.
This list of municipal bonds for sale is from November 27, 2023. For real-time municipal bonds for sale information, BondView is your compass. A quick CUSIP entry or an advanced search will lead you to specific bond details, from coupon rates and maturity dates to recent trade prices and current credit ratings.
As with any investment, the market value may vary during the period the investment is held. Subject to prior sale and market conditions. Price as of 11/27/23.
This is an updated version from our previous Top 10 California Municipal Bonds, published October 23, 2023.