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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.



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