S&P Removes Negative Outlook From California Muni Rating (BFZ, MUC, EVM, IIC, IQC, NUC, NAC, NXC, PZC, PCK, PCQ)

Administrator — Thu, 07 Jul 2011 19:34:55 +0000

Is California’s debt rating safe? Or is in the same boat as Greece? That depends upon whom you ask. Meredith Whitney would probably say it is not safe. Standard & Poor’s, however, is now saying something different. After a new budget passage we have seen that S&P has removed its “negative” outlook on the State of California.

The negative outlook is now listed as “stable” and it has maintained a “A-” rating for the state after the $27 billion or so budget gap was mostly filled. This is considered more of a stop-gap that balances the huge difference between expenses and revenues.

S&P even called the budget which Governor Jerry Brown signed as being mostly realistic. It also went as far as to say that the state will now get to issue its revenue anticipation notes. For investors seeking the high income of municipal bonds, this may matter. It was not that long ago that California was believed to be very much at-risk of other downgrades.

There is still some caution at stake because S&P noted some missed opportunities and noted that it does not adequately address many of its accumulated obligations from over the last decade.

This is far from an upgrade. Investors should also consider that this “A-” is still the lowest rating of all 50 states. Some of the more liquid closed-end mutual funds that trade around the California municipal market are as follows:

BlackRock California Municipal Income Trust (NYSE: BFZ)
+0.9% at $13.50; 52-week trading range is $12.02 to $14.99

BlackRock MuniHoldings California Insured Fund, Inc. (NYSE: MUC)
+0.4% at $13.61; 52-week trading range is $12.-7 to $14.70

Eaton Vance Insured California Municipal Bond Fund (NYSE: EVM)
+1.1% at $11.87; 52-week trading range is $10.12 to $13.50

Invesco California Insured Municipal Income Trust (NYSE: IIC)
+0.1% at $13.32; 52-week trading range is $11.84 to $14.95

Invesco California Quality Municipal Securities (NYSE: IQC)
+0.8% at $12.23; 52-week trading range is $10.81 to $13.60

Nuveen California Quality Income Municipal Fund (NYSE: NUC)
-0.35% at $14.36; 52-week trading range is $12.18 to $16.08

Nuveen California Dividend Advantage Municipal Fund (NYSE: NAC)
+0.3% at $12.79; 52-week trading range is $11.50 to $14.50

Nuveen California Select Tax Free Portfolio (NYSE: NXC)
+0.5% at $13.20; 52-week trading range is $12.31 to $14.53

PIMCO California Municipal Income Fund III (NYSE: PZC)
+0.2% at $9.30; 52-week trading range is $8.33 to $10.56

PIMCO California Municipal Income Fund II (NYSE: PCK)
+0.2% at $9.30; 52-week trading range is $7.90 to $10.41

PIMCO California Municipal Income Fund (NYSE: PCQ)
-0.26% at $12.89; 52-week trading range is $11.42 to $14.30

JON C. OGG

Filed under: Analyst Calls, Bonds, Compensation, Corporate Governance, Dividend, Economy, Personal Finance, Politics Tagged: BFZ, EVM, IIC, IQC, MUC, NAC, NUC, NXC, PCK, PCQ, PZC

California Muni Bond Funds Defy Hangman (AB, BLK, EV, MS, AKP, BCK, RAA, BFZ, BCL, BJZ, MUC, CEV, EVM, CCA, IIC, IQC, ICS, NUC, NVX, NAC, NZH, NXC, PZC, PCK)

247wallst — Tue, 16 Jun 2009 17:00:13 +0000

It seems that even the Governator is having a hard time saving California, and many are blaming him for the state’s ballooning budget deficit. The company is facing billions in deficits and the headlines around the web put the state only weeks away from a financial meltdown. The state entered another moratorium for foreclosures, yet ask anyone from outside of the state if they think property has yet to get dirt cheap there. There are probably 20 or so single-state closed-end municipal bond funds that investors own. These come from AllianceBernstein Holding L.P. (NYSE: AB), BlackRock, Inc. (NYSE: BLK), Eaton Vance Corp. (NYSE: EV), Morgan Stanley (NYSE: MS), Nuveen, and PIMCO. Interestingly enough, most of these municipal bond funds are up on the day. This is also not the full list in the entirety of the California single-state muni funds and does not include the open-ended funds:

Alliance California Municipal Income Fund Inc. (AKP)
+0.15% at $11,34; 52-week trading range is $6.56 to $14.23

BlackRock California Insured Municipal Income Trust (BCK)
+0.27% at $11.19; 52-week trading range is $7.15 – 13.45

BlackRock California Investment Quality Municipal Trust (RAA)
+0.47% at $10.59; 52-week trading range is $6.80 to $12.52

BlackRock California Municipal Income Trust (BFZ)
+0.26% at $11.65; 52-week trading range is $7.35 to $14.54

BlackRock California Municipal Income Trust II (BCL)
+2.3% at $11.45; 52-week trading range is $6.85 to $14.00

BlackRock California Municipal 2018 Term Trust (BJZ)
-1.3% at $13.60; 52-week trading range is $9.02 to $15.49

BlackRock MuniHoldings California Insured Fund, Inc. (MUC)
+0.55% at $10.84; 52-week trading range is $5.50 to $12.57

Eaton Vance California Municipal Income Trust (CEV)
+1% at $9.99; 52-week trading range is $5.26 to $13.90

Eaton Vance Insured California Municipal Bond Fund (EVM)
+0.4% at $10.42; 52-week trading range is $6.22 to $13.70

MFS California Insured Municipal Fund (CCA)
+1.8% at $9.38; 52-week trading range is $6.09 to $11.92

Morgan Stanley California Insured Municipal Income Trust (IIC)
+0.27% at $11.23; 52-week trading range is Z$7.24 to $13.56

Morgan Stanley California Quality Municipal Securities (IQC)
+0.9% at $10.52; 52-week trading range is $6.75 to $13.77

Morgan Stanley Insured California Municipal Securities (ICS)
FLAT at $12.25; 52-week trading range is $9.95 to $15.00

Nuveen California Quality Income Municipal Fund (NUC)
+0.9% at $11.80; 52-week trading range is $7.44 to $13.65

Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
+1.6% at $11.45; 52-week trading range is $7.25 to $13.21

Nuveen California Dividend Advantage Municipal Fund (NAC)
+0.3% at $10.83; 52-week trading range is $7.24 to $13.74

Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
+0.65% at $10.55; 52-week trading range is $6.94 to $13.34

Nuveen California Select Tax Free Portfolio (NXC)
+0.4% at $12.21; 52-week trading range is $9.15 to $14.50

PIMCO California Municipal Income Fund III (PZC)
+3.8% at $7.97; 52-week trading range is $4.28 to $13.93

PIMCO California Municipal Income Fund II (PCK)
+4.9% at $7.89; 52-week trading range is $4.25 to $14.17

PIMCO California Municipal Income Fund (PCQ)
+2% at $10.52; 52-week trading range is $6.85 to $16.20

There is a very simple reason we did not include the dividend yields in these. Many have seen very sporadic dividend yields and these change often from month to month. In certain extreme cases, the dividends can also be skipped.

It used to be that you could buy the insured municipal funds with no perceived risk. But in today’s world, the questions loom about how much strength the insurer for the single muni issuers has. Too many got hung up in mortgage insurance woes.

Jon C. Ogg
June 16, 2009

Posted in Bonds, Dividend, Mutual Funds, Politics Tagged: AB, AKP, BCK, BCL, BFZ, BJZ, BLK, CCA, CEV, EV, EVM, ICS, IIC, IQC, MS, MUC, NAC, NUC, NVX, NXC, NZH, PCK, PZC, RAA

24/7 Wall St. » MUC

S&P Removes Negative Outlook From California Muni Rating (BFZ, MUC, EVM, IIC, IQC, NUC, NAC, NXC, PZC, PCK, PCQ)

California Muni Bond Funds Defy Hangman (AB, BLK, EV, MS, AKP, BCK, RAA, BFZ, BCL, BJZ, MUC, CEV, EVM, CCA, IIC, IQC, ICS, NUC, NVX, NAC, NZH, NXC, PZC, PCK)