At the start of January, PIMCO succumbed to the inevitable and cut distributions on a number of municipal closed-end funds. The move was emblematic in our view of a difficult market environment of low yields, flat curves, tight credit spreads, and higher cost of leverage than existed for most of the post-crisis period.
In this article, we take a look at the various municipal bond options available to income investors. In particular, we highlight the fact that high-yield municipal bond ETFs compare quite favorably to closed-end funds in aggregate on a number of metrics. For