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MHI Is Traded At 10.14% Discount And Offers One Of The Highest Yields

Published Sun, 10 Feb 2019 17:16:43 -0500 on Seeking Alpha

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
The sector continues to impress us with its performance. The benchmark the iShares National AMT-Free Muni Bond ETF (MUB) finished the last week in a green territory and currently is showing a strong desire to break the resistance level of $109.40 per share. Definitely, the important news regarding the unchanged interest rates can be a favorable factor for the sector and its willingness to increase its price.

Source: Barchart.com - iShares National AMT-Free Muni Bond ETF
Despite the significant rise, the market environment provides with a statistical edge and fundamental reason to discuss them as potential "Buy" candidates. My attention was caught by a fund which has relatively low Z-score, the spread between its price and net asset value is 10.14% and it offers a higher yield compared to its peers with similar characteristics. Pioneer Municipal High Income Trust (MHI) can be categorized as a high-yield... Read more


Older articles featuring Mub,nea (MUB,NEA):
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