- After a broad sell-off in munis, there has been a bit of a rebound. While this positive momentum is welcomed, I see limited upside in the next few months.
- NEA still trades at a valuation above its longer-term average. While the current discount remains reasonably attractive, I don't see it as a compelling buy.
- The broader sector has some tailwinds, such as improving state finances and the exclusion of SALT changes in the latest spending proposals.
- However, there are headwinds too, such as rising yields and elevated valuations.
For further details see:
NEA: A Neutral Rating Still Makes Sense Here