Argent

What Will Happen to Closed End Funds?

First,to answer ROGER, don't understand your question. My comment/question covered ALL muni CEFs, not just CA.

Second, to answer "rich mcn," there are no "redemptions" of commom (or preferred stock). The oustanding shares are fixed and trade like any other stocks in the market. With respect to the NAV driving down the prices I don't agree. These products are bought primarily for their (tax-exempt) yield which comes from muni bonds in the portfolio regardless of whether the market value of those bonds declines - it's a fixed rate.
My own opinion as to why these stock prices are going down with the overall market, regardless of yields of up to 8.00%, is that many are selling to raise cash and the low daily trading volumes of many of them just get killed by the specialists who simply are afraid of them. Twas ever thus with these things, i.e., thin volume making selling difficult.
I look for the majors - Nuveen, Black Rock, Eaton Vance, etc. - to begin conversions to open end status. Of course they'd have to deal with the auction rate preferred stocks many of them use for leverage; but that's another story. I know Nuveen can buy stock in the open market if the NAV goes below a certain point and stays there for a certain number of consecutive days.