Closed-End Funds Slide in September; XFLT Launches Tender Offer

Closed-end funds (CEFs) experienced broad declines in September, driven by rising long-term rates and significant discount widening, making current discounts notably attractive. Loan/CLO Equity CEF XFLT launched a tender offer for 12.5% of its shares at a 2% discount, while Municipal CEF AFB adopted a managed distribution policy raising its monthly payout to $0.067, pushing the NAV distribution rate to 7.2% but risking NAV erosion. MLP CEF KYN raised its distribution for the third time this year, and Aberdeen CEFs MGF and MIN announced reverse splits due to persistent NAV declines.