- 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 their upward move for the cycle already. Given that, we do not think investors should fear duration.
- We revamped the muni core tab and would be especially focused on the high-yield section, especially DSM, NMCO, OIA.
- Investors should also think about their exit plan including possibly rotating to NHMAX and entering dream sell orders on all of their muni CEF positions.
For further details see:
Municipal And CEF Update | Analysis And Recommendations For Tax-Free Yields Up To 5%