Muni CEF Update | August 2024 | Opportunities Remain. LOAD UP!
Summary
Municipal bond closed-end funds (CEFs) are poised for gains as interest rates likely peaked, reducing leverage costs and boosting net investment income (NII).
Current average discount is -7.2%, with potential for further tightening, making discounted funds compelling for the next 12 months.
Focus on funds with greater liquidity, activism, wider discounts, higher NII yields, and stronger NAV performance for optimal returns.
Saba's significant investments in Pioneer muni CEFs indicate strong NAV performance, high yields, and remaining discounts, enhancing their attractiveness.
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