Nuveen Municipal Credit Opportunities Fund

NMCO

Market cap $599M

Nuveen Municipal Credit Opportunities Fund (NMCO) offers high tax-free income by investing in lower-rated and unrated municipal bonds, leveraging selective credit risk. NMCO's reported 7.54% distribution includes 19% return of capital, so real income yield is closer to 5.25%-6%, still attractive for muni funds. The fund's strategy relies on the historically low default rates in muni markets, making lower credit ratings less risky than in other bond sectors.

I maintain a Sell rating on Nuveen Municipal Credit Opps Fund due to its persistent underperformance, high leverage, and a narrow discount relative to peers. The NMCO fund's heavy allocation to low-rated and unrated municipal bonds increases risk, especially in a weaker economic environment. Distribution coverage remains weak, with a significant portion paid from return of capital, raising concerns about sustainability.

We review the CEF market valuation and performance through the first week of February and highlight recent market action. CEFs had a strong week, with most sectors in the green, driven by EM Equity and Muni sectors, and year-to-date gains in both NAVs and discounts. We take a look at why preferred CEFs have sharply outperformed their ETF counterparts last year.

What's better than monthly dividends that add up to 7.2% to 15.4% yearly yields?

NEW YORK--(BUSINESS WIRE)--Several Nuveen closed-end funds have declared distributions. These funds represent investment strategies for investors seeking diversified sources of cash flow to prepare for and sustain their retirement income needs. For further information regarding fund distributions, including earnings, undistributed net investment income, and notices, please visit www.nuveen.com/cef. Additionally, several funds have announced distribution increases of up to 71%. The distribution.

Stocks were up slightly as the jobs report shifted the narrative towards 'higher for longer.' The payroll report came in stronger than expected, but the narrative was that it was a hawkish report, meaning higher rates for longer. Discounts for CEFs continue to tread water, with real estate and interest rate-sensitive bond sectors performing well, while emerging market equity and convertibles performed poorly.

NEW YORK--(BUSINESS WIRE)--Nuveen Closed-End Funds today announced that the Board of Trustees of the Funds has approved the regular monthly and quarterly distributions. In addition, the Board of Trustees has approved updated distribution polices described below under “Monthly & Quarterly Distributions” for The Nuveen Preferred & Income Opportunities Fund (NYSE: JPC), Nuveen Preferred and Income Term Fund (NYSE: JPI), Nuveen Variable Rate Preferred & Income Fund (NYSE: NPFD), Nuveen.