Closed-end funds are witnessing larger discounts, a trend that has been observed by experts such as Gregory Near, Erik Herzfeld, and Relative Value’s Neer. Today, data from Closed-End Fund Advisors revealed that tax-free municipal bond funds have reached their largest discounts in 25 years.
These funds, which are traded on stock markets and managed by firms including BlackRock (NYSE:BLK) and Franklin Templeton, offer potential opportunities despite inherent risks such as high fees and the use of leverage. Notable bargains have been identified in funds such as Nuveen AMT-Free Municipal Value Fund, Western Asset Municipal High Income Fund, Adams Diversified Equity Fund, Tri-Continental Corp., and JPMorgan’s Korea Fund.
Adding to the list of discounted offerings, floating-rate funds like BlackRock Floating Rate Income Strategies Fund and First Trust Senior Floating Rate Income Fund II are also trading at substantial discounts. The current discount trend in closed-end funds is providing investors with a variety of options to consider in their investment strategies.
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