- RFM has been declining along with other long-duration assets, which we would expect when the expectation is higher rates.
- The monthly distribution was bumped up due to their target distribution yield; however, the latest declines would indicate cuts are in the future if it doesn't rebound.
- Being a fund focused on municipal bonds, a sizeable portion of the distribution was classified as tax-free.
- Unfortunately, a more significant amount of non-qualified dividends was also accounted for in 2021.
For further details see:
RFM: Widening Discount, But Risks Remain