CEF Market Weekly Review: Saba Calls Off A CEF Merger

ADS AnalyticsInvesting Group LeaderFollow5ShareSavePlay(6min)Comment(1)SummaryWe review the CEF market valuation and performance through the second week of April and highlight recent market action.CEFs rallied broadly with tightening discounts, now trading near historic averages, signaling improved sentiment across most sectors except MLPs.Saba's canceled BRW-SABA merger preserves relative value opportunities and maintains SABA's appeal due to its low fee structure and wider discount.RSF remains an attractive tender offer play, with a recent pro-ration factor of 21% and potential for annualized alpha of 5% at a 6% discount.Upcoming Muni CEF tender offers (CMU, CXH) and Nuveen fund mergers present tactical and strategic opportunities amid appealing muni yields and sector consolidation.Looking for a helping hand in the market? Members of Systematic Income get exclusive ideas and guidance to navigate any climate. Learn More » SlavkoSereda/iStock via Getty Images Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund [CEF] market activity from both the bottom-up - highlighting individual fund news and events - as well as the top-down - providing an overview of the broader market. We alsoThis article was written byADS Analytics13.67K FollowersFollowADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.ADS Analytics runs the investing group Systematic Income which features 3 different portfolios for a range of yield targets as well interactive tools for investors, daily updates and a vibrant community.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.