Main Thesis
The purpose of this article is to evaluate the PIMCO California Municipal Income Fund (PCQ) as an investment option at its current market price. PCQ has struggled in the new year, and I see that struggle continuing throughout the rest of 2020. The fund is still quite expensive, with a premium in excess of 17%, which makes me reluctant to recommend positions. Further, the income production metrics remain under pressure, with PCQ seeing its UNII balance continue its consistent decline. Finally, PCQ has about one quarter of its assets directly tied