New York - London - Athens - Oslo

Morningstar, Inc. Commentaries

CEF Update: 10 Large Distribution Changes

Apr 8, 2014
Click here to access CEF Update: 10 Large Distribution Changes

Leverage Refinancing

Nuveen continued to refinance the fixed-rate munifund term preferred shares (MTPs) issued by its muni funds. Last week,  Nuveen Dividend Advantage Municipal 3(NZF) and Nuveen NY AMT-Free Municipal Income (NRK) both announced that they issued institutional munifund term preferred shares (iMTPs) and variable-rate munifund term preferred shares (VMTPs) to refinance the rest of their outstanding MTPs. This will likely reduce leverage costs for both funds as long as short-term rates remain low.

provided by:

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individuals, financial advisors, and institutions.

Morningstar provides data on more than 385,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services and has approximately $195 billion in assets under advisement or management as of Sept. 30, 2012. We have operations in 27 countries.