Introduction
A positive week for the municipal bonds and the closed-end funds that invest in them. Just a year ago, the market environment was totally different and it was possible to find many interesting buying opportunities in the area. Currently, the closed-end funds are traded at relatively high annual Z-scores. So, we are very cautious when we select our long positions because the discounts have narrowed. Also, pay attention to the CEFs which have negative earnings/coverage ratio because of their potential dividend decrease. Very good examples were several PIMCO funds and their dividend cuts. One