CEF Report February 2023 | The January Effect Didn't Disappoint

Summary

• The January Effect boosted the valuation of most areas of the CEF market.  Taxable bond CEFs have rallied strongly while leaving munis behind.

• We think this is an opportunity for investors for 2023 as credit spreads are likely to widen dragging down taxable bond NAVs.  We favor munis and high-quality taxables.

• Agency MBS is one of the best areas of…