NEW YORK ( TheStreet) -- Most bond funds have suffered lately, but the damage has been particularly severe for closed-end municipal funds. Many of those have declined more than 12% this year, compared to a fall of 3.0% for the Barclays Capital U.S. Aggregate Bond index.Now some bottom fishers argue that the closed-end funds sell at bargain prices. The bulls note that the tax-free funds yield 6%. That's the equivalent of a taxable bond that yields more than 9% for high-bracket investors. "Investors will come back to the closed-end funds because the yields are attractive," says Patrick Galley, portfolio manager of RiverNorth Core Opportunity (RNCOX), a mutual fund that invests in closed-end funds.
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