- Energy Harbor shares are top holding in 15 of Nuveen’s funds
- Received in debt workout, shares deliver boon — and a risk
The biggest holding in the world’s biggest high-yield municipal bond fund isn’t a municipal bond.
It’s a $1.5 billion stake in shares of Energy Harbor Corp., a thinly traded power company that’s not listed on any US stock exchange. The Nuveen High Yield Municipal Bond Fund — like many others run by the investment giant — received the stock three years ago after the company’s precursor, FirstEnergy Solutions, restructured its debts in bankruptcy.
It hasn’t been a bad investment. In fact, the shares have surged so much that it’s creating a dilemma for Nuveen — and posing a little-known risk to its investors.
Bloomberg Markets
By Martin Z Braun and Miles Weiss
February 16, 2023