NZF: Too Much Return Of Capital To Be Sustainable

Nuveen Municipal Credit Income Fund offers a higher yield by taking on both credit and interest rate risk, typical for municipal bond funds. NZF's headline of 7.5% yield is inflated by return of capital; the real, sustainable yield is closer to 4.9% after adjustment. Compared to peers, NZF's risk-return profile is decent, but funds like NMZ and SHYM may offer better risk-adjusted returns by focusing more on credit risk.

Seeking Alpha • Dec 3, 2025

CEFs Are Becoming Less Appealing For Income Investors

The investment case for closed-end funds (CEFs) is weak now due to tight discounts, high leverage costs, and expensive underlying assets. Most CEFs do not deliver sustainable alpha, and lower-fee actively managed ETFs now offer similar exposures with better economics. We have reduced our CEF allocation, favoring alternatives like BDCs, select ETFs, preferreds, and bonds for better value and risk/reward.

Seeking Alpha • Sep 9, 2025

NZF: Large Muni Bond CEF With Attractive Yield, But Valuation Is Too High

NZF is a well-run fund with a high yield, but the valuation risk is very high now. The discount has dropped below 2%. There is a high risk of a distribution cut since the fund has not been earning its high distributions.

Seeking Alpha • Sep 3, 2025

Need Almost $1100 per Month in Tax-Free Income? Invest in 8 Municipal Bond ETFs

One of the only downsides to passive income from stocks and bonds is that the revenue generated from those investments is subject to federal and state income tax.

24/7 Wall Street • Jun 20, 2025

NZF: Buy High-Yield Muni And Expect Good Return In The Next 12 Months

I rate NZF a buy, expecting a double-digit total return in the next 12 months due to attractive yields and a likely rate cut late this year. NZF's 8%+ tax-exempt yield is compelling, especially for high-income investors. The muni fund could also see price gains due to the NAV discount and favorite price move, adding total returns. Stock market such as the S&P 500 may prove to be more challenging to get double-digit gains from the current level, after the V-shape rebound.

Seeking Alpha • Jun 12, 2025

Municipal Update: Key Themes And Allocation Tilts

We discuss key Muni themes, including tariffs, federal funding freeze, tax exemption, and more. Muni valuations remain attractive, particularly the value of the tax exemption. We highlight the four Muni buckets where we see value.

Seeking Alpha • Feb 21, 2025

Want Over $1000 per Month in Tax-Free Income? Buy These 8 Municipal Bond ETFs

One of the only downsides to passive income from stocks and bonds is that the revenue generated from those investments is subject to federal and state income tax.

24/7 Wall Street • Feb 10, 2025

5 Best Monthly Dividends For 2025 With Yields Up To 13.7%

Are higher interest rates and lower bond prices a sure thing for 2025? Mainstream financial pundits say yes.

Forbes • Dec 12, 2024

NZF: A High Yielding, Well Run CEF, But The Distribution Is Likely Not Sustainable

NZF offers a high distribution yield of 7.33%, but its earnings coverage ratio and negative UNII suggest a possible future distribution cut. The fund's discount to NAV is currently -5.24%, below its 6-month average, indicating a less favorable buying opportunity. NZF has a leverage ratio of 39.49% and an average leverage cost of 4.28%, with a significant interest rate exposure of 12.98 years.

Seeking Alpha • Dec 5, 2024

Ideas For Managing CEF Discount Volatility

Volatility in the closed-end fund, or CEF, market has recently increased, while tight discounts create a point of vulnerability for the market. We discuss various strategies investors can use to make their CEF portfolios more resilient to take advantage of future draw-downs. These strategies include focusing on likely CEF distribution changes, seeking funds with wide discounts, considering term CEFs, and riding sidecar with CEF activists.

Seeking Alpha • Sep 18, 2024