A few weeks ago, we introduced an approach to gauging relative value opportunities among CEFs that appear to hold broadly similar assets. In this article, we take a look at a number of similar BlackRock municipal CEFs which are trading at divergent valuations.
In particular, we identify the following four funds with similar portfolio profiles.
- BlackRock MuniYield Quality Fund II (MQT)
- BlackRock MuniHoldings Fund (MHD)
- BlackRock Municipal Income Trust (BFK)
- BlackRock Municipal Income Trust II (BLE)
Within this group, we prefer MQT whose discount has diverged from the other funds, mostly due, in our view,