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The article reports on the alternative of buying closed-end municipal bonds in the U.S. due to the global risks posed by the decline of yields of municipal bonds as their value increases. It is inferred that closed-end municipal fund can address the income dilemma because they use leverage and they trade at discounts to net asset value. The anticipated rise of municipal issuance driven by sustainable demand is noted.

The article identifies closed-end funds traded in June 2015 that feature attractive tax-free payouts and high-taxable yields. Topics discussed include the decline in prices of closed-end bond funds caused by the bond-market selloff that transpired in the first week of June and the competitiveness of the 6 percent municipal yield. The leverage and discounts to net asset value that triggered the yields and the risk of interest-rate hikes that could slash share prices and dividends are mentioned.

The article discusses how oversold junk bond funds may produce 10 percent or more profits. Topics discussed include drops in prices of junk bonds in the high yield bond market; discounted closed-end funds in the market such as Credit Suisse High Yield Bond, Dreyfus High Yield Strategies, and the DoubleLine Income Solutions (DSL); and impact of the U.S. Federal Reserve's increased interest-rate on the market.

In the article, the author examines the performance of the exchange-traded fund (ETF) industry in 2014 and expectations for 2015. He claims that major institutional investors are expected to increase their use of plain-vanilla ETFs in 2015, specially in the bond market. Also cited are the resignation of investor Bill Gross at Pacific Investment Management, and the acquisition by Janus Capital Group of ETF provider IndexIQ.