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RiverNorth Flexible Municipal Income Fund II trades at a deep discount with high yield but carries risks from leverage and low coverage.

Analyst Insights
26 May 2026
Seeking Alpha
View Source
Neutral
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RiverNorth Flexible Municipal Income Fund II (RFMZ) currently trades at an attractive 8.71% discount and offers a 7.42% distribution yield. The fund uses a hybrid strategy combining municipal bonds and municipal closed-end funds, which provides tactical opportunities but also increases volatility and expenses. Despite the appealing yield, the fund has low coverage and is likely to continue returning capital destructively, making it a riskier choice. Its leveraged structure and reliance on active management may not suit all municipal bond investors, though it remains a valuation-driven entry point for those willing to accept the risks.

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