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The Fed just handed muni bond investors a rare pricing window, but the funds worth buying are not the ones most investors already own.
Shares of Nuveen AMT-Free Quality Municipal Income Fund (NYSE: NEA - Get Free Report) crossed below its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $11.21 and traded as low as $10.50. Nuveen AMT-Free Quality Municipal Income Fund shares last traded at $10.6050, with a volume
Finding securities that generate high monthly yields is a big part of successful retirement income investing. However, taxes can eat significantly into those earnings power. I detail 2 tax-efficient 7%+ yielding monthly dividend payers to hold in a taxable account while detailing their pros and cons.
Janus Henderson AAA CLO ETF (NYSEARCA:JAAA) holds floating-rate, AAA-rated collateralized loan obligation tranches from issuers like.
Investors who bought the iShares National Muni Bond ETF (NYSEARCA:MUB) did so for a good reason: it is the cheapest, most liquid way to own a diversified basket of federally tax-free municipal bonds.
A 71-year-old retiree holding $850,000 across a basket of closed-end funds is generating roughly $61,000 a year in distributions. That works out to a blended yield of about 7.2%, with several of the underlying funds trading at discounts of 8% to 12% below net asset value. The arithmetic itself is straightforward: income target divided by... The Closed-End Fund Portfolio That Quietly Pays a 71-Year-Old $61,000 a Year on $850,000 and Trades at a Persistent Discount
Nuveen Quality Municipal Income Fund (NAD) and Nuveen AMT-Free Quality Municipal Income Fund (NEA) are nearly identical municipal bond CEFs with highly correlated NAVs. Currently, NEA trades at a 120 basis point tighter discount than NAD, compared to the average discount values. This creates a mispricing opportunity for a pair trade. Historical NAV correlation (99.7%) and mean reversion patterns suggest NAD is undervalued by $0.14–$0.15 relative to NEA.
Nuveen AMT-Free Quality Muni has delivered strong double-digit returns, closely tracking equity market performance over the past year. NEA's valuation has shifted from a 5% NAV discount to a slight premium, reducing its relative attractiveness for new capital deployment. While the muni market backdrop remains supportive, the absence of a discount prompts a more discerning approach to entry points.