NUV - RMMZ: Hybrid Approach To Municipal Bond Exposure
2024-05-24 13:43:28 ET
Summary
- RiverNorth Managed Duration Municipal Income Fund II is a closed-end fund that provides exposure to municipal bonds.
- RMMZ utilizes a portfolio that includes individual municipal bonds and a fund-of-funds approach, investing in other CEF muni funds.
- RMMZ offers a potentially attractive discount and can be used tactically as a swap partner with other similar RiverNorth funds.
Written by Nick Ackerman, co-produced by Stanford Chemist.
RiverNorth Managed Duration Municipal Income Fund II, Inc ( RMMZ ) is a closed-end fund that provides investors exposure to municipal bonds. However, their approach is a bit unique in that it utilizes a portfolio that is a sleeve of individual municipal bonds and another that is a fund-of-funds approach, investing in other CEF muni funds.
There are a number of RiverNorth funds that operate quite similarly; we've covered the others previously. With such similar strategies, the overall returns are quite highly correlated. That can make them great for rotation opportunities to swap between each of them based on which is the better valuation....
RMMZ: Hybrid Approach To Municipal Bond Exposure