There's a small part of the municipal bond market that could provide a big opportunity to investors, according to Nuveen.
The Nuveen High Yield Municipal Bond Fund , which Close manages, has about 9% of its assets in charter school muni bonds.
NHMAX 1Y mountain Nuveen High Yield Municipal Bond Fund Charter school bonds fund construction, renovation or the purchase of school facilities.
There are currently about 8,000 charter schools in the United States serving 3.7 million students, according to the National Alliance for Public Charter Schools .
Traditional K-12 bonds pay about 3.5%, while charter school bonds yield around 5% — a 150 basis point difference, Close said.
Persons:
Dan Close, We've, there's, munis, Nuveen, Close
Organizations:
Municipal Bond Fund, muni, Municipal, Fund Charter, National Alliance for Public Charter Schools, AAA, AA, Standard, The Academy Charter School, Norton Science, Language Academy, of Peace Academy, St
Locations:
Nuveen, United States, Hempstead , New York, San Bernardino , California, Paul , Minnesota