OXLCP - CEF Report May 2021: The Tight Get Tighter

• In the first quarter, closed-end fund discounts tightened by 261 bps from -6.3% to -3.7%. But in the month of April, we saw another 80 bps of closure.
• We think the muni CEF space looks relatively attractive compared to the taxable bond CEF categories.
• As such, we've been trimming many of our taxable bond CEF positions while increasing the exposure to munis. It's my contention that muni CEFs will eventually hit a premium.
• Look at funds that have wider discounts and higher yields as those securities are attracting the most amount of capital.
• RSF, ARDC, VCIF, NCZ and BWG fit that mold. We also like preferreds of CEFs for long-term income streams. NHF-A, OPP-A, XFLT-A, ACP-P, and OXLCP.

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