RiverNorth Flexible Duration Municipal Income Fund II, Inc. (RFMZ)
NYSE NYSE Primary NASDAQ 
RFMZ: Still The Best Value Even As Discount Tightens
RiverNorth Flexible Municipal Income Fund II remains the most attractively valued among its peers, trading at a deep 8.71% discount. RFMZ's hybrid strategy leverages both municipal bonds and muni CEFs, offering tactical opportunities but also heightened volatility and expense ratios. The fund's 7.42% distribution yield is appealing, but coverage remains low, with destructive return of capital likely to persist.
RFMZ: The Return Is Largely Return Of Capital
RiverNorth Flexible Municipal Income II aims to exploit CEF discounts in the municipal bond space but delivers sub-market, unattractive income. RFMZ's 7.9% distribution is misleading; only 3.16% is true income, with the rest being return of capital—well below competing muni funds. The fund's strategy of capturing CEF discount-to-NAV reversion has not worked in practice, as evidenced by persistently low real yields.
RFMZ: Discount Narrows Making It Less Appealing
RFMZ offers exposure to both muni CEFs and individual bonds, but high leverage and layered fees limit its appeal for municipal bond investors. The fund's managed distribution policy boosts yield, but coverage is weak, and much of the payout is tax-deferred return of capital, not tax-exempt income. RFMZ and its sister funds are best used as swap candidates to exploit discount/premium differentials, but current discounts are less compelling.
