Nuveen Municipal Value CEF (NUV)

[Henry Lili]

Hi, any thoughts on why this one is selling off so hard? From what I can see it's a no leverage CEF that holds investment grade municipals with an intermediate duration selling at an above average discount to NAV. I've owned it for a few years and have been nibbling during the sell off (when we come out of this slide folks will be looking for income). Other then individual investors selling off CEF's in general, and the possibility that "Fund-of-funds" may be selling for liquidity. Anything fundamentally wrong with the fund? Or is it simply "fear" that municipalities won't be able to make payments

 

[Montecfo]

Yes. I own it. People are selling the bonds just like everything else reducing prices. Bid-ask spreads have widened as many of these issues are thinly traded adding to downward pressure. Finally, premium on CEF declining.

Note that nothing has changed on the bonds themselves.