CEF Report July 2024 | Some Decent Opps As CEFs Continue To Destroy Their Benchmark

Summary

• CEFs remain a strong fixed income investment, but valuations are becoming frothy, especially in taxable bonds.

• Counter-cyclical approach to CEF allocation involves reducing exposure during unfavorable environments, such as two years ago.

• Focus on muni CEFs due to wide discounts, potential for alpha production, and strong risk-adjusted returns.

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