FMN - Why Municipal Closed-End Funds And Why Now?
There's more than one way to invest in municipal bonds. Closed-end municipal funds seek to provide higher levels of income, and short-term volatility can present attractive entry points for long-term investors.
Municipal bonds offer multiple benefits to income-seeking investors-high quality ratings, low default rates and low volatility relative to most fixed income sectors. Perhaps most of all, muni bonds are embraced by investors for their appealing tax advantages.
Just do the math. At the end of September 2018, investment grade bonds represented by the Bloomberg Barclays U.S. Aggregate Bond Index were yielding 3.46%. The Bloomberg