Originally Posted by brewer12345
Beware leverage in the funds.
+1 Leverage here is NOT your friend if interest rates rise sharply.
Also- some believe the relative safety of many muni's to be overstated by the bond rating agencies considering the high debt load of many local gov'ts. The legal precedents set by the Detroit bankruptcy may also affect the muni market.
I have invested in certain Nuveen muni CEF's in past & continue to hold a few shares as I think the selling has been overdone, recent share price declines have priced in some rise in long interest rates, & the current discounts to NAV provide some cushion against further declines. However- IMHO these still should be viewed as somewhat speculative.