Published Thu, 13 Jun 2019 11:53:00 -0400 on Seeking Alpha
Over the past few months, most of you have noticed our increased activity in closed-end funds as the inflow of volatility finally shook them up and created various arbitrage, and directional, opportunities for active traders like us.
Currently, we are cautious when we choose our long positions as most of the closed-end funds which hold municipal bonds have lost their statistical edge and are traded at positive Z-scores. However, there are several interesting pair trade opportunities which can be traded. For the conservative market participants with longer investment horizon, I still see interesting dividend opportunities which are traded at high discounts.
Although the past week was positive for the stock market and the riskier assets, we did not see an abandonment from the safer asset classes such as municipal bonds. Some of the market participants continued to prefer the safer side of the coin after the bad jobs report. On Friday, after the U.S. government said the economy added far fewer jobs than expected during the month of May, the 10-year Treasury yield dropped below 2.06% which is its lowest level since September 2017.
Source: CNBC.com, US 10-Year yields
On a weekly basis, the main index iShares National AMT-Free Muni Bond ETF (MUB) increased its price by $0.01 and finished the Friday session at $112.88 per share. It is important to mention that the ex-dividend date of the main index was on Monday and it distributed a... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|PIMCO MUNICIPAL INCOME FUND II||15.32||0.0||0.00||0.00||4.99|
|PIMCO MUNICIPAL INCOME FUND||14.42||0.0||0.00||0.00||4.83|
|PIMCO MUNICIPAL INCOME FUND III||12.31||0.0||0.00||0.00||4.82|
|INVESCO VAN KAMPEN ADV MUNICIPAL INC TRUST II||11.18||0.0||0.00||0.00||4.77|
|PIMCO CALIFORNIA MUNICIPAL INCOME FUND||19.48||0.0||0.00||0.00||4.69|
|BLACKROCK MUNICIPAL INCOME INVESTMENT TRUST||13.86||0.0||0.00||0.00||4.61|
|PIMCO CALIFORNIA MUNICIPAL INCOME FUND III||10.93||0.0||0.00||0.00||4.45|
|DWS MUNICIPAL INCOME TRUST||11.51||0.0||0.00||0.00||4.39|
|BLACKROCK MUNICIPAL INCOME INVESTMENT QUALITY TRUST||14.27||0.0||0.00||0.00||4.31|
|BLACKROCK MUNICIPAL BOND TRUST||15.52||0.0||0.00||0.00||4.17|
|BLACKROCK MUNIASSETS FUND||15.10||0.0||0.00||0.00||4.12|
|EATON VANCE MUNICIPAL BOND FUND||12.78||0.0||0.00||0.00||4.00|
|BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST||13.69||0.0||0.00||0.00||3.63|
|DELAWARE INV MINNESOTA MUNICIPAL INCOME FUND II||12.95||0.0||0.00||0.00||3.47|
|BLACKROCK MUNI NY INTERMEDIATE DURATION FUND||14.65||0.0||0.00||0.00||3.29|
Older articles featuring Pimco Municipal Income Fund Ii (PML):Treasury Curve Bear-Steepened; Muni Yields Higher - Muni Fortnightly, August 31, 2020
Treasury Yields Rose A Few Basis Points By The End Of The Week - Muni Fortnightly, August 10, 2020
Treasury Yields Were Little Changed In Low Volatility - Muni Fortnightly, June 22, 2020
Treasury Yields Little Changed In Low Volatility - Muni Fortnightly, June 1, 2020
Treasury Yields Mixed With Curve Steepening - Muni Fortnightly May 11, 2020
Treasury And Municipal Yields Extremely Volatile - Muni Fortnightly March 30, 2020
Weekly Review: Municipal Bond CEFs - The Benchmark Distributed Its Dividend
Municipal Bond Perspective: Approach High Yield With Caution In 2020
Weekly Review: Municipal Bond CEFs - Dividend Cut For Most Of PIMCO Funds
Reaching For Yield? Be Aware Of What Lies Beneath...