Muni CEF Update: NAV Trends Weakening But No Action Likely Needed

Summary

• We watch a host of factors and NAVs are near the top of the list.  Muni CEF NAVs have been moving lower in the last month.

• We think a lot of that weakness is due to political overhangs including the new $3.5T "infrastructure" bill and changes to muni tax laws including bring back advanced refundings.

• Muni CEFs are in the top 7% of all observations …