MMIT - Municipal CEF Sector Update: What We're Doing After A Roller Coaster Ride
2024-03-14 23:55:17 ET
Summary
- We take a look at the municipal sector after a rollercoaster ride.
- We find that longer-duration munis remain attractive, particularly relative to corporate bonds. Separately, muni CEF discounts are wide and higher-quality bonds look best.
- We highlight a couple of new allocations including the unleveraged CEF NMI, a term CEF BMN as well as two ETFs.
In this article we take a fresh look at the municipal fund space, with a particular focus on tax-exempt muni CEFs. The sector has gone on a rollercoaster ride with a sharp rise in yields starting in 2022 and what looks like a blow-off top late last year after which yields have fallen and stabilized somewhat....
Municipal CEF Sector Update: What We're Doing After A Roller Coaster Ride