Western Asset Managed Municipals Fund (MMU)

MMU: The Return Is Driven By Return Of Capital

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.