Nuveen AMT-Free Quality Municipal Income Fund (NEA) Stock

The fund saw another income boost to start the month of June. The muni yield curve is upward sloping, providing a distinct advantage over similarly dated treasury bonds. NEA still has a large discount to NAV, which could entice value-oriented buyers.

NUW: Tax-Free AMT-Free Income While Waiting For Upside

The Nuveen AMT-Free Quality Municipal Income Fund has experienced a Q4 rally and a boost in income, leading to gains for investors. However, the fund's income boost may not be sustainable, so investors should weigh this carefully if they plan to hold beyond the short-term. Lower inflation is a positive for bonds, including munis. This is because the Fed is unlikely to raise its benchmark rate further.

Municipal Bond CEFs have historically wide gaps between price and NAV due to investor dislike of rate increases. Once the FOMC stops, these funds should recover. The NEA CEF is reviewed in detail as the start of a due diligence process investors are encouraged to complete. The NEF CEF is recommended for long-term investors, despite potential rate hikes. Delayed entry or use a swap trade with a similar fund an investor owns at a loss.