UPDATE: Bank of America Initiates Coverage on Nuveen Municipal Income Fund with Neutral Rating on Potential Earnings Improvement

In a report published Monday, Bank of America analyst Elias Lanik initiated coverage on Nuveen NY AMT-Free Municipal Income Fund NRK with a Neutral rating. In the report, Lanik noted, “We rate NRK Neutral due to potential earnings improvements gained from the recent consolidation of six Nuveen NY Muni CEFs into one balanced by the fund having a relatively long duration which we view as a negative. NRK is the result of the recent merger of six NY Muni CEFs with the intention of creating a single AMT-free NY muni fund with lower expenses and increased liquidity. As a result of the mergers, NRK is now the largest, most liquid NY Muni CEF with about $1.3bn in net assets and $2.1bn in total investment exposure, roughly twice the size of the next largest NY muni fund.” Nuveen NY AMT-Free Municipal Income Fund closed on Friday at $14.54.