CEF Report March 2023 | The Terminal Rate Moving Higher Means CEFs Are Still At Risk

Mar 09, 2023

∙ Paid

Summary

Taxable bond CEFs are trading right on their long-term average discount and not incorporating any potential for a recession this year. We think the risk is skewed to the downside.
Muni CEFs are trading extremely cheap- bottom 4% of 26 year observations- but with the terminal rate on the rise again, risks abound.
With the terminal rate moving highe…