- The muni CEF space is largely buy-and-hold (or long-term rental agreements). But right now, there's a lot of dislocation in the sector.
- Some funds are extremely expensive while others are relatively cheap. Making swaps makes sense to rotate into the better opportunities and see more discount closing tailwinds.
- Make sure you watch your tax consequences as we would want to avoid short-term capital gains. Those are taxed at ordinary rates which can be very high for some individuals.
- Right now, our best buys remain DSM, NMCO, NHMAX, NXJ, and MYI.
For further details see:
More Relative Value Trades And Opportunities: Munis