OCCIP - Weekly CEF Market Commentary - May 30 2021

• Stocks eked out some small gains this week bringing the S&P 500 within a half a percent of the all-time high hit on May 7th.
• Discounts climbed back to their tightest levels of the last 8 years with munis starting to catch up to taxables. The spreads between the two are down to 1.47%.
• We are reaching the upper bounds of where discounts have historically gone. I do think we have about 6-9 months left before we start seeing those discounts widen back out.
• All the lemon juice has been squeezed out of the lemon (i.e. high yield spreads) today. The BofA High Yield OAS spread is sitting at 3.3%.
• I detail some trades I made in the week prior and what looks interesting.

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