We recorded this video to help investors and financial advisor get a sense of what to expect and look for when seeking federally tax-free income in municipal bond CEFs. We focus on answering the following questions.
1. Why would someone buy municipal bond exposure through a CEF vs. other options?
2. One-third of all CEFs are focused on municipal bond, are they attractive now?
3. What is going on with earnings and UNII trends for municipal bond CEFs?
4. Why type of investor typically buys municipal CEFs?
5. What does a typical municipal bond portfolio look like as a CEF?
6. What are some key things you look for in a municipal bond CEF?
7. What are the risk factors to watch for with municipal bond CEFs?
Muni investing through CEFs is the only way our firm knows that you can take a leveraged muni bond portfolio and keep the tax-free nature of the yield vs. applying leverage in your own investment account. Also, when discounts are as wide as they have been recently it is easy to argue that you are getting the professional management for free because you are buying for "extra yield" from the discount than the friction of management fees. .
We regularly give updates on all CEF sectors included municipal bond CEFs in our quarterly CEF research call and periodic Municipal bond webinar. More info can be found on our blog: CEF-Blog.com.