https://seekingalpha.com/article/4235748-weekly-municipal-bond-cef-trades-mhn-seems-one-best-new-york-munisJan. 26, 2019 1:18 AM•mhn
Summary
A follow-up of our weekly review of the sector.
Review of MHN which caught our attention.
Our view and course of action.
Introduction
Closed-end funds do not seem like the best place to be for active traders, at least on paper. However, these products have been our bread and butter for a while now, and as long as we are capable of detecting opportunities and successfully acting on them, we intend to keep on rolling.
Active followers have taken note of the "Weekly Review" series, and it would only be appropriate to complement these articles with a follow-up, like this one, whose goal is to highlight the funds of interest to us.
Statistical Comparison And Potential Trades
it's been a long time since I presented you a trading opportunity for a state-specific municipal bond closed-end fund. Usually, I am more focused on the national munis due to their diversified portfolios. State-specific or not when I see a value in some of the funds, I am eager to share it with you. Today, our review will be for one New York municipal bond CEF, or as I called it in the title "One Of The Best New York Munis" from my perspective. Before that, I would like to summarize the recent performance of the benchmark and the sector in general.
Advertisement
The iShares National AMT-Free Muni Bond ETF (NYSEARCA:MUB) impressed all of us with a stunning rally over the past months. Currently, the price finds resistance and remains at the current levels. Respectively, the statistical edge to buy a fund from the sector has vanished and to see a muni with a Z-score of -3.00 points is not the case at the moment.
