mavericks

Municipal Bond CEFs: Unexplainable Weakness Continues

Wow, I confess I did not know how much the muni CEF's have gotten hit this month.

Municipal Bond CEFs: Unexplainable Weakness Continues

Yeah, I've been following the muni CEF market for awhile but I don't own any right now. One thing I learned was that Nuveen has too many funds and none of them seem to outperform whereas PIMCO's funds (not just munis) typcially offer higher yields and rare dividend cuts. As a result, they outperform but also trade at higher premiums. I own mostly floating rate CEF's right now which have done great with a rising interest rate environment. PFN (which I own) was mentioned in Barron's over the weekend by Bill Gross and is getting a nice pop today. I'll check out your other muni piece.

Municipal Bond CEFs: Unexplainable Weakness Continues

Alot of these funds are (or were) at premiums, leveraged and some are cutting dividends. Deadly combination in a rising interest rate environment. BTW, stick with the PIMCO muni funds and stay away from Nuveen. The difference is pretty incredible.