Municipal CEF Update | Back To Favorable Trend, Overweighting

Summary

• Muni CEFs peaked in early August.  Since then, discounts have widened by 2-3% while NAVs fell by about 3.5% through the end of Oct.

• Since then, NAVs have started to rebound as we have passed the seasonally weakest part of the calendar for the muni market.

• Tax loss harvesting in CEFs seems to also have passed and discounts have stabilized but have y…