Municipal CEF Update: High Yields And Wide Discounts

Positive Tactical Considerations Systematic Income Naturally, much of this yield (about half for the higher-yielding funds) is going to be ROC however it can still do the job as far as discount tightening as it is likely to generate additional demand, pulling investor capital from taxable sectors. This capital reallocation is likely to benefit higher-yielding funds in the sector. Exhibit 27: Combined upgrade to downgrade ratio, Moody's and S&P Municipal credit spreads remain near rock-bottom levels. This pi ...