WDI - CEF Weekly Review: Deleveraging Worries Rise For Tax-Exempt CEFs

• We review CEF market valuation and performance through the third week of April and highlight recent market action.
• CEF NAVs had a tough week due to falls in both stocks and Treasuries, however, discount tightening partially offset the drop.
• We take a look at the recent rise in leverage levels across tax-exempt CEFs and whether it signals an increased risk of forced deleveraging.
• And highlight some news and commentary across the CEF space.
• We continue to see value in the tax-exempt sector as well as funds with significant consumer-facing and floating-rate holdings.

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