MHI - MAV And MHI: Municipal Bond CEFs Being Bought Up By Activist
2024-02-19 01:25:34 ET
Summary
- MAV and MHI provide investors exposure to municipal bonds, allowing for hefty portions of tax-exempt distributions to investors.
- Both funds are trading at significant discounts to their net asset value per share, potentially presenting an opportunity for investors.
- These funds could perform much better going forward if the Fed cuts rates in the next year or two.
- The activist group Saba Capital Management has acquired a significant stake in both funds, which could lead to further potential.
Written by Nick Ackerman, co-produced by Stanford Chemist.
We've been covering a number of different municipal bond closed-end funds lately. That includes the non-leveraged Nuveen AMT-Free Municipal Value Fund ( NUW ), and we also wrote up an update on Invesco Value Municipal Income Trust ( IIM ), IIM being a leveraged muni CEF....
MAV And MHI: Municipal Bond CEFs Being Bought Up By Activist