Summary
- The Nuveen High-Yield Municipal Bond Fund NMZ is likely to be hit hard by the economic impacts of the COVID pandemic.
- The CEF is exposed to low-rated transportation and healthcare bonds that may be hit the hardest.
- NMZ also has high exposure to struggling city governments that are likely to face steeper financing costs and lower tax revenue.
- To make matters worse, NMZ primarily holds volatile long-term bonds and is leveraged roughly 1.5X.
Seeking Alpha
by Harrison Schwartz
Mar. 16, 2020