Western Asset Managed Municipals Fund

MMU

Market cap $567M

Western Asset Managed Municipals Fund is a municipal bond closed-end fund focused on high-credit-quality, investment-grade bonds. MMU offers a 6.25% distribution, but after adjusting for return of capital, the effective yield is approximately 4.1%, which is unimpressive. The fund's strategy emphasizes low credit risk and medium tenor, but I believe better risk-adjusted returns exist in lower-rated muni bond funds.

We review the CEF market valuation and performance through the fourth week of April and highlight recent market action. CEF markets faced renewed risk aversion, with sector discounts widening to historical averages and MLPs and Convertibles led to the upside. Western Asset CEFs' NII remained largely stable; key drivers include short-term rate direction, liability management, and overdistribution.

NEW YORK--(BUSINESS WIRE)--Category: Financials.

NEW YORK--(BUSINESS WIRE)--Category: Financials.

NEW YORK--(BUSINESS WIRE)--Category: Fund Announcement.

NEW YORK--(BUSINESS WIRE)--Category: Financials.

The following Funds announced today their share repurchase activity during the second quarter of 2024.

Municipal CEFs have seen distribution hikes in response to activist attacks, aiming to tighten discounts and attract additional demand. Municipal bonds offer attractive valuations, high tax exemption value, and resilience during credit drawdowns, making them an appealing investment. We recently added to our muni CEF holdings on the back of these supporting tactical and strategic factors.

NEW YORK--(BUSINESS WIRE)--Category: Financials.

NEW YORK--(BUSINESS WIRE)--Effective March 1, 2024, the named portfolio management team responsible for the day-to-day oversight of the Fund is as follows: