There is good news and bad news from that relatively obscure corner of the investing world, closed-end municipal bond funds.
Their share prices have recovered from a shocking collapse back in March that took place in tandem with the plunges in the equity and corporate credit markets. But while the major stock indexes such as the S&P 500 have rebounded from their earlier losses, muni closed-end funds have recouped only about half of theirs.
The good news is that, as a result, they still offer high yields, especially compared with much of the Treasury market and money-market funds, which are on the verge of paying bupkus (that’s a technical term) because of the Federal Reserve’s aggressive actions to counter the slide in the markets and the economy from the coronavirus crisis.
Barron’s
By Randall W. Forsyth
June 10, 2020 11:28 am ET