The Eaton Vance California Municipal Income Trust is experiencing downward pressure due to the ongoing wildfires in California, which have significantly impacted the state's municipal bond market. As of January 10, 2025, the wildfires in Los Angeles have destroyed over 10,000 acres, leading to a death toll of 10 people and raising concerns over air quality. These fires have exacerbated California's insurance crisis, with the state's fire insurer of last resort, the FAIR Plan, facing unprecedented pressure. The FAIR Plan's liabilities have surged, with the Pacific Palisades area alone accounting for $5.9 billion in liabilities. This situation has heightened the risk associated with municipal bonds in the region, as the financial stability of local governments is threatened by the potential for increased insurance costs and liabilities.
The current price of Eaton Vance California Municipal Income Trust (CEV) is $10.09, reflecting a 0.49% decrease from the previous close.