, which has been struggling to recover after a parched 2008. Nuveen Enhanced Municipal Value Fund, which will invest primarily in investment-grade municipal bonds, raised $289.5 million in its offering and began trading on the New York Stock Exchange on Friday. The fund, whose trading symbol is (NEV), will use leverage in the form of tender option bonds,” Daisy Maxey Reports From The WSJ.
“The municipal market has rallied in the past month, but Nuveen believes the new fund’s yield will surpass what is available on the secondary market,” Maxey Writes.
“There’s still really good value to be found if you’ve got good credit research in the long end of the market,” said Anne Kritzmire, managing director of closed-end funds for Nuveen Investments.
The average yield for Nuveen’s leveraged municipal closed-end funds is 5.7%, an attractive rate, according to Cecilia Gondor, vice president at Thomas J. Herzfeld Advisors Inc., a Miami investment-advisory firm.
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