Nuveen Municipal Value Fund
Everyone hates paying taxes. So when investors have the ability to get a 7.3% taxable-equivalent yield, they should jump at the opportunity. As one of the largest and oldest municipal CEFs, the Nuveen Municipal Value Fund (NUV) makes it possible.
Munis have been hit hard by the twin specters of rising rates and some high profile defaults. (Detroit, anyone?) As such, the sector has sold off in spades, leaving some pretty juicy discounts in the NAV department. Discounts like these haven’t really existed since the Fed lowered rates back in 2008.
And with taxes for many individuals most likely rising over the next few years, those discounts should begin to vanish. That makes NUV even more tantalizing.
NUV holds a variety of munis with the bulk of them in the investment grade categories and backed by real revenues. Those holdings have helped it earn a bronze rating. Expenses for NUV run a cheap 0.54% and shares trade for a 2.695 discount to its NAV.