CEF managers' ability to hold onto underpriced illiquid securities in times of market stress represents an advantage over open-end funds that may have to sell to meet unexpected redemptions, says Morningstar's Cara Esser.
As investors realize the impact of new tax increases, municipals are going to become more valuable--but research is key to finding value and avoiding trouble, says Fidelity's Kevin Ramundo.
With short-term rates remaining low, we don't anticipate an immediate impact on the cost of leverage financing for most CEFs.
As investors ditched certain income-producing assets on worries of rising rates, an abundance of fixed-income CEFs moved into undervalued territory, according to Morningstar's Cara Esser.
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