PMF - Muni Bond CEFs: PIMCO Or Nuveen? The Choice Is Obvious In This Market Environment

• I don't quite understand who would be buying the PIMCO National municipal bond CEFs over the Nuveen national muni bond CEFs right now.
• These two fund sponsors of municipal bond closed-end funds are probably the two most popular when it comes to high-yields (PIMCO) and the sheer number and size of funds (Nuveen).
• But in terms of performance and valuation, there's a big difference between the two which should be obvious to anyone who performs even basic research and due diligence.
• So if you think a worst-case scenario is going to unfold for bonds and bond funds with the fed funds rate going to say, 3.5% in a year, then why wouldn't you choose the fund sponsor with the better valuation, better NAV performance, and lower NAV yield?
• Investors big and small seem to think that the higher the yield, the more attractive the fund. But in difficult times like these when interest rates are rising, it's the funds with the lowest NAV yields that are FAR more likely to be able to cover those yields and sustain their NAVs.

For further details see: