Top 10 California Municipal Bonds for Sale
List of California Municipal Bonds for Sale
This selection of top 10 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 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.
To view all bonds request a free 7-day free trial from BondView.
Scroll to the right over the table for full view.
Last Updated: September 32, 2024
Access All Top Bonds For Sale Today with BondView
Why Invest in California Municipal Bonds?
Investing in California municipal bonds for sale could present a solid opportunity for those seeking a balance of safety and income. These bonds are known for their high credit quality and consistent income generation, making them an attractive option for both seasoned and new investors.
Summary Statistics
| Yield to Worst | Coupon | BV Credit Score | Time to Maturity | Asking Price | |
|---|---|---|---|---|---|
| Mean | 0.02621 | 0.049 | 8.8 | 101.385 | |
| Min | 0.0248 | 0.04 | 8 | 100.03 | |
| Max | 0.03 | 0.05 | 10 | 102.12 |
- Average Yield to Worst: 2.62%, which is slightly lower than the Florida municipal bonds we analyzed last week.
- Coupon Rate: Most bonds have a 5% coupon, with an average of 4.9%.
- Credit Score: The BV Credit Score ranges from 8 to 10, with an average of 8.8, indicating high credit quality.
- Time to Maturity: On average, these bonds mature in about 7 months (0.59 years).
- Asking Price: Average price is $101.39, slightly at a premium.
Yield Spread Analysis
When evaluating California muni bond rates, the yield spread is a key factor to consider. Below is a breakdown of some noteworthy California bonds and their respective yield spreads:
| CUSIP | Yield to Worst | Yield Spread | BV Credit Score |
|---|---|---|---|
| 612448PH7 | 0,03 | 0,0052 | 9 |
| 786060AJ2 | 0,028 | 0,0032 | 9 |
| 13063DKP2 | 0,0278 | 0,003 | 9 |
| 79766DMG1 | 0,026 | 0,0012 | 8 |
| 672325XJ1 | 0,0257 | 0,0009 | 8 |
| 40450PAW5 | 0,0251 | 0,0003 | 8 |
| 651401LF6 | 0,025 | 0,0002 | 9 |
| 916544BD0 | 0,0249 | 0,0001 | 10 |
| 95332RBX6 | 0,0248 | 0 | 9 |
| 492244GB8 | 0,0248 | 0 | 9 |
The MONTEREY CNTY CALIF CTFS PARTN REF-PUB FACS bond offers the highest yield spread at 0.52%, making it a potentially lucrative option for investors looking for the best California muni bonds with higher returns.
Best Value California Municipal Bonds (Highest Yield Spread to Credit Score Ratio):
Some of the best opportunities in the California municipal bond market are those offering high yields relative to their credit score. Here are some options for investors:
| CUSIP | Yield to Worst | Bv Credit Score | Yield to Credit Ratio |
|---|---|---|---|
| 612448PH7 | 0,03 | 9 | 0.0005777778 |
| 786060AJ2 | 0,028 | 9 | 0.0003555556 |
| 13063DKP2 | 0,0278 | 9 | 0.0003333333 |
| 79766DMG1 | 0,026 | 8 | 0.00015 |
| 672325XJ1 | 0,0257 | 8 | 0.0001125 |
The MONTEREY CNTY CALIF CTFS PARTN REF-PUB FACS bond again stands out, offering the best value when considering the yield to credit ratio.
Yield Curve and Credit Quality
Understanding the relationship between yield, time to maturity, and credit quality is essential when investing in California municipal bonds. This graph shows the relationship between yield, time to maturity, and credit quality. The size of each point represents the quantity available.
Risk-Return Analysis for California Municipal Bonds
This plot illustrates the relationship between credit risk (BV Credit Score) and potential return (Yield to Worst). The size of each point represents the quantity available.
Key Takeaways of the Risk-Return Analysis of California Municipal Bonds
- Risk-Return Trade-off: The low correlation suggests that other factors, such as maturity or market conditions, might be influencing yields more than credit scores.
- Investment Strategy: When looking for the best California muni bonds Investors might consider bonds with a BV Credit Score of 9 for potentially higher yields without significantly increased risk.
- Market Conditions: The stable yields across different credit scores indicate a healthy market for these California bonds, where investors can possibly expect consistent returns.
Investment Considerations
When considering California municipal bonds for sale, investors should evaluate several factors to ensure they are making informed decisions. These bonds offer various benefits, but there are key considerations to keep in mind:
- Yield Range: The California municipal bonds offer yields ranging from 2.48% to 3.00%, with an average yield of approximately 2.62%.
- Credit Quality: The bonds maintain high credit quality, with BV Credit Scores ranging from 8 to 10 (on a scale where higher is better). Investors seeking the best California municipal bonds can rely on these high-credit ratings for confidence in their investments.
- Short-Term Maturities: These bonds have relatively short-term maturities, with all bonds maturing between October 2024 and August 2025. This reduces interest rate risk but may require reinvestment sooner.
- Premium Pricing: Most of the California muni bonds for sale are currently trading at a premium (above par value), with asking prices ranging from $100.03 to $102.12.
Standout Bond: The MONTEREY CNTY CALIF CTFS PARTN REF-PUB FACS bond (CUSIP: 612448PH7) stands out with the highest yield (3.00%) and a favorable yield-to-credit ratio, among the best california municipal bonds available.
Potential Risks
- Default Risk: While the risk appears low given the high credit scores, there’s always some level of default risk with california municipal bonds.
- Premium Pricing and Returns: Many California municipal bonds are priced above their face value. While this results in a capital loss at maturity, it’s typically offset by higher interest payments. Focus on the bond’s yield to maturity for a comprehensive view of your expected return, accounting for both the premium paid and interest received.
- Reinvestment Risk: The short maturities (all within about 1-1.5 years) may present reinvestment risk if interest rates decline in the near future.
- Liquidity Risk: Some bonds have low quantities available (as low as 5 units), which might affect liquidity for larger investors.
- Interest Rate Risk: While mitigated by the short maturities, any significant rise in interest rates could negatively impact the market value of these bonds before maturity.
Additional Insights
- Yield Curve: The relationship between yield and time to maturity could provide insights into market expectations for future interest rates.
- Credit Score Impact: Analyzing how the BV Credit Score correlates with yield could reveal whether the market is adequately pricing risk.
- Price Discrepancies: Comparing asking prices to Bondview Estimated Prices might uncover potential mispricing or arbitrage opportunities.
California Municipal Bonds: Issuer Information
Monterey County, California
Purpose: Refinancing previously issued debt through Certificates of Participation.
Investment Potential: Generally stable, as county bonds are typically backed by tax revenues.
Sacramento City Redevelopment Agency Successor Agency, California
Purpose: Tax allocation refunding bonds, likely to refinance existing redevelopment debt.
Investment Potential: May be affected by the dissolution of redevelopment agencies in California; investors should carefully assess the revenue streams backing these bonds.
State of California
Purpose: Various purposes, including infrastructure, education, and other state projects.
Investment Potential: Generally considered stable due to the state’s large economy and taxing power, but can be affected by California’s budget situation.
San Francisco City & County Airports Commission, California
Purpose: Refunding previously issued airport revenue bonds.
Investment Potential: Tied to airport revenues; can be stable but may be affected by changes in air travel patterns.
Oakland Unified School District, Alameda County, California
Purpose: General obligation bonds for school facilities improvements and construction.
Investment Potential: Backed by property taxes; generally stable but can be affected by local economic conditions.
Los Angeles County Schools Pooled Financing Program
Purpose: Certificates of Participation for school district financing.
Investment Potential: Pooled program may offer diversification, but depends on the financial health of participating school districts.
Newhall School District, California
Purpose: School facilities improvement district bonds.
Investment Potential: Backed by property taxes within the district; stability depends on local property values and economic conditions.
Upper Santa Clara Valley Joint Powers Authority, California
Purpose: Revenue bonds to finance water system improvements.
Investment Potential: Tied to water system revenues; can be stable but may be affected by water usage patterns and rates.
City of West Hollywood, California
Purpose: Public financing for West Hollywood Park improvements.
Investment Potential: Depends on the city’s overall financial health and specific revenue sources backing the bonds.
Kern Community College District, California
Purpose: General obligation bonds for facilities improvements.
Investment Potential: Backed by property taxes; generally stable but can be affected by local economic conditions and enrollment trends.
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 is updated every 2 months.
This list of California municipal bonds for sale is current as of September 23, 2024. For real-time information, use BondView as your guide. A quick CUSIP entry or advanced search reveals details such as interest rates, coupon rates, maturity dates, recent trade prices, and credit ratings.
As with any investment, the market value may vary during the period the investment is held. This article is informational only and does not a substitute for professional financial advice. Please check with your financial advisor before making any investments. Subject to prior sale and market conditions. Price as of 09/23/25