CEF Report December 2022 | Muni's Continue Their Cuts But Look Attractive

Summary

• CEFs continue to see wider credit spreads as investors take tax losses but also worry about recession and interest rates.

• Muni CEFs today are trading very cheap thanks to tax loss harvesting and fears of higher rates.  But we think the bulk of the rate move has been made.

• Remember, we buy the NAV, not the discount longer-term.  If we are buying the…