Pimco's California Municipal fund may delay payment of November dividend

The AP reports:

The Pimco California Municipal Income Fund II said Wednesday it may be forced to delay the payment of its November dividend, as well as the declaration of its next scheduled dividend due to severe market disruptions.

The fund, managed by Allianz Global Investors Fund Management LLC, said the value of its portfolio securities have declined due to the recent market turmoil. As a result, the fund's asset coverage ratio has fallen below the 200 percent level. The fund is not permitted to pay or declare dividends unless its auction-rate-referred shares have asset coverage of 200 percent.

Are you going to hearing more about muni bonds in the coming years? Yes.