Muni Closed-End Funds Offer Quality Assets at Attractive Prices

Municipal bond closed-end funds are relatively attractive because investors can buy high quality assets at a discount, said Robert Amodeo, Portfolio Manager at Western Asset Management. Amodeo added that muni bond closed-end funds offer attractive yields in a low-yield environment. He said he likes revenue better than general obligation bonds because they offer higher yields with less risk in many cases. Amodeo said munis are fairly valued in general after a nice rise this year, but remain the cornerstone of any portfolio. Finally, he said supply is starting to stabilize after a drop early this year.