Kass a buyer of Muni CEFs


The combination of credit issues and rising interest rates have municipal closed-end funds selling at near-record discounts (10%+) to net asset values, says Doug Kass, and at near-record pretax-equivalent yields vs. taxable bonds. Those conditions, says Kass, constitute a margin of safety and he's an owner of: NMA, NAD, ETX, BKN.

Related ETFs: Ā MUB, HYD, BAB, PZA, MUNI, TFI, ITM, MLN, HYMB, CMF, BABZ, BABS, XMPT, SHM, SUB, PRB, SMB, PZT, NYF, CXA, PWZ, PVI, SMMU, MUAF, INY, MUAD, MUAG, MUAE, VRD, MUAC, GMMB, RVNU

Comments (5)
  • Vertical Spread
    , contributor
    Comments (581) | Send Message
     
    What's the angle in these funds, duration? I see some in that list yielding 6% others 9%.
    17 Dec 2013, 01:06 PM Reply Like
  • phildevoyd
    , contributor
    Comments (184) | Send Message
     
    California municipals are doing well today. For instance, $NKX is up over 2% off a nearly 10% discount.
    By the way, several of the Nuveen municipals will roll up into $NAC sometime after the first of the year.
    17 Dec 2013, 01:18 PM Reply Like
  • heartky
    , contributor
    Comments (85) | Send Message
     
    How much leverage is being used?
    20 Dec 2013, 09:12 AM Reply Like
  • phildevoyd
    , contributor
    Comments (184) | Send Message
     
    http://bit.ly/1928Liv
    This site will answer any question about CEF's, although it is run by Nuveen.
    20 Dec 2013, 09:23 AM Reply Like
  • NYer1
    , contributor
    Comments (2316) | Send Message
     
    BKN has appreciated so much since this interview with Doug Kass that it is trading at a PREMIUM already.
    Pretty sure Kass would not be buying it here when other similar funds are still at discounts of 7-10% BELOW NAV and yielding a higher yield right now.
    Matter of fact, it would shock me if he doesn't sell it to capture the arbitrage opportunity in a swap by selling an over valued fund at a premium and buying another fund (or funds ) at discounts.
    23 Dec 2013, 08:35 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs