MYI News and Press, Blackrock MuniYield Quality Fund III Inc From 06/22/21

The muni CEF sector has continued to rally this year due to the resilience of municipal bond yields and tight CEF discounts. A number of funds, however, have grown to premium valuations that are unlikely to prove sustainable. In this article, we take a look at a number of these fu...

Muni CEF discounts are closing by the day. I believe they will reach a premium in the next few months (perhaps sooner). We have remained steadfastly bullish on tax-free munis, especially high-yield munis in 2021, for numerous reasons. Our view is that rates have made the bulk of t...

During the fund flows week, investors continued their search for yield, injecting a net $2.0 billion and $1.9 billion into taxable bond funds (including ETFs) and municipal bond funds, respectively. On the taxable side, Short Investment-Grade Debt Funds (+$884 million) attracted the l...

CEF mergers have been running at a fast clip over the past year, likely in response to growing fund expenses as a proportion of portfolio yields. Combined with high premium valuations as well as a divergence in valuations, mergers present a risk for CEF shareholders due to the potenti...

With the post-pandemic US economy on the mend, a new threat has emerged: inflation. A confluence of pent-up consumer demand, record household savings, low inventories and global shortages has ignited the sharpest near-term price hikes in decades. Effective inflation-protection str...

Municipals posted another month of positive performance amid range-bound interest rates. Fiscal stimulus and infrastructure uncertainty limited municipal issuance. Summer seasonal supply-demand dynamics have historically boded well for muni performance. For further details s...

Risk-adjusted performance for the Global Market Index (GMI) continued to tick higher in May. GMI’s Sharpe ratio — a measure of risk-adjusted return – rose to 0.82 on a trailing 10-year basis through last month. That’s close to a pandemic high, but still...

We take a look at the Municipal CEF sector which has held up very well despite a rise in Treasury yields. Fundamentals remain in good shape with the fiscal stimulus feeding through and the potential infrastructure tailwind in the pipeline. We continue to favor the credit or high-y...

With valuations tightening and a number of risks on the radar, it makes sense to take a margin-of-safety approach to income portfolios. A number of CEF strategies can provide additional margin-of-safety without necessarily reducing income. We discuss three additional CEF strategie...

Average yields on 10-year AAA muni bonds rose less than half that of Treasuries year to date and hover just below 1%. Municipals remain attractive due to a combination of prevailing tailwinds and long-term fundamental strengths. Muni bonds cover a wide range of maturities and qual...