BAF - Weekly Closed-End Fund Analysis: BlackRock Muni Mergers Not Risk Free

• The Macro Picture in the last week was primarily focused on stronger hard economic data and the rise in interest rates.
• Rising rates when it happens quickly tends to frighten investors - both in the bond and stock side.
• We made several trades in the last week to sell overpriced CEFs and rotate into cheaper CEFs.
• Outside of munis and individual preferreds, the best option I see out there is KKR Income Opps at a -7.4% discount and nicely rising NAV.
• The BlackRock muni mergers are not risk free.  The last time they did this the gain was not realized.

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