Another Reason to Buy Munis Today

[ETF Daily News]( January 5th, 2024 [Another Reason to Buy Munis Today]( Ever since Federal Reserve chairman Jerome Powell told the markets to expect the Fed to cut interest rates several times in 2024, the bond market has been on a tear. Falling interest rates should ease issuers’ financial burden, so investors should, in theory, be willing to push a little further out on the credit risk spectrum. And for now, that’s what appears to be happening. The downward move in the yield curve has been a rising tide that’s lifted all boats, from Treasuries to junk bonds. The positive sentiment has extended, as well, to municipal bonds, which are trading near 52-week highs. Some players in the municipal bond market have begun pointing to another long-term factor that favors these muni bonds: the spiraling federal debt. Multi-trillion dollar budget deficits could become the norm, according to CBO (Congressional Budget Office) projections. That could mean Uncle Sam is going to face a tough choice: cut spending or raise taxes—and sooner rather than later. If federal income tax rates are raised in the future, it will make munis even more attractive since they’re federally tax exempt. So, let’s look at one closed-end muni bond fund that could be a great addition to your portfolio. Nuveen Municipal Credit Income Fund I’m talking about the Nuveen Municipal Credit Income Fund ([NZF](. Its portfolio consists of munis across all credit ratings. Nuveen’s website gives us a brief description of the fund: The Fund seeks to provide current income exempt from regular federal income tax by investing in an actively managed portfolio of tax-exempt municipal securities. Up to 55% of its managed assets may be in securities rated BBB and below at the time of purchase or, if unrated, judged to be of comparable quality by the Fund’s portfolio team, and the Fund uses leverage. So NZF is a fund that has both investment grade and non-investment grade bonds in its portfolio, although the majority of the bonds it owns are investment grade (28.2% A-rated, 21.7% BBB-rated, 11.3% AA-rated). And the fund uses leverage in order to… Continue reading at [INVESTORSALLEY.com]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This email contains a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Stock News users. Stock News is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Stock News, and Stock News disclaims any liability for or arising from such statements and opinions. You are hereby advised that Stock News is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2024 ETF Daily News, part of StockNews.com - POWR Stock Rating, Market Outlook & Investment Insights Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019