(NZF) Nuveen Municipal Credit - Ratings and Ratios

Nuveen Municipal Credit Income (NYSE:NZF) is a municipal national long-term fund listed on the NYSE. As a closed-end fund, it invests in a diversified portfolio of municipal bonds, aiming to generate tax-exempt income for its investors.

To evaluate the funds performance, we can look at key performance indicators (KPIs) such as the distribution yield, which is a crucial metric for income-focused investors. A higher distribution yield indicates a more attractive income stream. Additionally, the funds expense ratio, which is the cost of managing the fund, is another important KPI. A lower expense ratio is generally more desirable as it reduces the drag on the funds returns.

From a credit quality perspective, the funds holdings are likely to be comprised of investment-grade municipal bonds, given its focus on credit income. The credit quality of the underlying holdings can be assessed by looking at the average credit rating of the portfolio. A higher average credit rating indicates a lower credit risk.

The funds duration, which measures its sensitivity to interest rate changes, is also an essential KPI. A shorter duration indicates lower interest rate risk, while a longer duration suggests higher interest rate risk. As interest rates fluctuate, the funds net asset value (NAV) will be affected accordingly.

To further assess the funds attractiveness, we can compare its yield to that of its peers and the broader municipal bond market. A yield premium relative to its peers or the market could indicate a more attractive investment opportunity. Furthermore, the funds historical distribution coverage ratio, which measures its ability to cover distributions from its net investment income, is another vital KPI to examine.