Closed-End Funds: Screening For The Best Municipal Bond Exposure

Municipal bond closed-end funds (CEFs) are seeing narrowing discounts, with NXP and MHF offering the most compelling value in the space at present. Leverage costs are easing as the Fed cuts rates, which should improve distribution coverage and make leveraged muni CEFs more attractive. Of course, there are always risks that include increased volatility from leverage and sensitivity to long-term Treasury rates, but we've seen long-term rate stabilization within a fairly narrow range.

Seeking Alpha • Feb 4, 2026

RFMZ: The Return Is Largely Return Of Capital

RiverNorth Flexible Municipal Income II aims to exploit CEF discounts in the municipal bond space but delivers sub-market, unattractive income. RFMZ's 7.9% distribution is misleading; only 3.16% is true income, with the rest being return of capital—well below competing muni funds. The fund's strategy of capturing CEF discount-to-NAV reversion has not worked in practice, as evidenced by persistently low real yields.

Seeking Alpha • Dec 5, 2025

RFMZ: Best Value Of The Lineup

RiverNorth Flexible Municipal Income II offers the best value of its lineup of sister funds currently, with the widest discount. RFMZ employs a strategy of investing in both individual municipal bonds and other muni CEFs, then using high levels of leverage. A significant portion of RFMZ's distribution is classified as return of capital, not tax-exempt income that some investors could be looking for.

Seeking Alpha • Nov 21, 2025

RFMZ: Discount Narrows Making It Less Appealing

RFMZ offers exposure to both muni CEFs and individual bonds, but high leverage and layered fees limit its appeal for municipal bond investors. The fund's managed distribution policy boosts yield, but coverage is weak, and much of the payout is tax-deferred return of capital, not tax-exempt income. RFMZ and its sister funds are best used as swap candidates to exploit discount/premium differentials, but current discounts are less compelling.

Seeking Alpha • Aug 17, 2025

RFMZ: Successful Swap, Remains An Interesting Choice

RiverNorth Flexible Municipal Income Fund II (RFMZ) offers exposure to individual municipal bonds and muni bond-focused CEFs, managed by MacKay Shields and RiverNorth. The fund's high leverage and fees result in low net investment income, with performance needing to be driven by active management for potential capital gains. RFMZ trades at an attractive discount and has outperformed RiverNorth Managed Duration Municipal Income Fund (RMM), as we highlighted these two as swap candidates previously.

Seeking Alpha • Apr 29, 2025

The Month In Closed-End Funds: February 2024

For the third month in four, equity CEFs (+1.81%) witnessed gains while their fixed income CEF (+0.52%) counterparts for the fourth month in a row posted plus-side returns.

Seeking Alpha • Mar 8, 2024

The Dirty Dozen CEFs From 2021: A Summary

In 2021, a dozen closed-end funds, or CEFs, were launched, but none of them performed well, with all of them experiencing negative total returns since inception. The CEFs trade at wide discounts to NAV, with an average discount of -12.5%, and offer high yield income with annual yields as high as 12.9%. The hybrid funds with global allocations and higher yielding taxable fixed income funds have performed better than municipal fixed income funds and equity funds.

Seeking Alpha • Nov 7, 2023

RMM And RFMZ: A Swap Makes Sense

RiverNorth Capital Management offers several closed-end funds with municipal bond exposure, presenting an opportunity for swap trades. RMM is trading at a narrow discount on an absolute and relative basis, while RFMZ presents a relatively more attractive valuation with significantly similar exposure. Both funds have high expense ratios, leverage risks, and unpredictable tax-exempt income, making them less attractive for muni investors, but could still be exploited by those who are holding anyway.

Seeking Alpha • Sep 19, 2023

RFMZ: The Latest Offering From RiverNorth, Wait For Better Opportunity

RiverNorth has been busy in the last few years offering new funds; RFMZ is the latest effort they've brought to market. This one is another similar hybrid municipal bond fund approach to the others that we have been touching on.

Seeking Alpha • Jun 22, 2021

2 New Closed-End Funds In The Pipeline

Today, I wanted to go over two funds that should tentatively be launching in the future. The fund sponsors have filed with the SEC forms N-2 - this is a file to register new offerings, secondary offerings or anything that involves new shares being created.

Seeking Alpha • Apr 23, 2021