Stephen Lavin, Managing Director and Portfolio Manager at Nuveen, sits down with Jane King to discuss high-yield municipal strategies, including the Nuveen Enhanced High Yield Municipal Bond Fund, an interval fund. The fund, which Lavin manages, is a part of the $191 billion in high-yield municipal strategies that Nuveen manages, which also includes multiple closed-end funds (CEFs).
Lavin explains how interval funds and CEFs help investors access different areas of the municipal bond market to generate income. While that higher embedded yield comes with risk, the interval fund wrapper helps arbitrage that risk by “monetizing” it, Levin says. “We can get additional NAV or price return when credit spreads compress or active managers are contributing active credit selection to the portfolios,” he added.
Lavin also responded to discussions in Washington around eliminating the tax-exempt status of municipal bonds, calling the idea bad for the economy overall, with “possible negative impacts” on the higher education and healthcare sectors in particular. However, he noted the move could also generate positive impacts in energy and utilities and potentially benefit the charter school movement.
Learn more about the Nuveen Enhanced High Yield Municipal Bond Fund and closed-end funds at Nuveen
