MVF averages AA bonds. Morning star has 4 stars mty 16.6 years duration 7.32 selling at a discount to actual value -8.29% Will the price go down as rates go up what do you care you are hedged on the other side?
I like closed end muni bond funds and hold several of them, though not MVF. But there are a number of things to keep in mind. One, they generate a high yield because they invest in long-term bonds, and with interest rates set to rise, this involves a risk. Second, the risk is compounded by their leverage. I note MVF is 32% leveraged. That means they're borrowing short and investing long. Finally, you should inquire into how much of their "tax-exempt" holdings are subject to AMT. I suspect that a lot of investors are going to meet up with the AMT for the first time this year, and they are not going to like what they see.