RFMZ: Still The Best Value Even As Discount Tightens
RiverNorth Flexible Municipal Income Fund II (RFMZ) is currently the most attractively valued closed-end fund, trading at an 8.71% discount. The fund employs a hybrid strategy that combines municipal bonds and municipal closed-end funds, which can lead to both opportunities and increased volatility. Despite its appealing distribution yield of 7.42%, the fund faces challenges with low coverage and potential destructive returns.
- ▪RFMZ is trading at an 8.71% discount, making it the best value among its peers.
- ▪The fund utilizes a hybrid strategy that includes both municipal bonds and muni closed-end funds.
- ▪It offers a distribution yield of 7.42%, although coverage is low.
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