KEY POINTS
- As muni bonds are exempt from federal tax and many states’ taxes, effective after-tax yields of some muni closed-end funds are as high as 7%.
- A recent sell-off has tamped down share prices on municipal bond funds, creating a historically wide price discount from net asset value.
- Historically substantial CEF discounts come at a time of generally improved credit ratings in the muni market.
cnbc.com
David Sheaff Gilreath, partner/CIO of Sheaff Brock Investment Advisors and institutional asset manager Innovative Portfolios
JUL 1 2022