NYLI MacKay DefinedTerm Muni Opportunities Fund Common Shares (MMD)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach MMD as a closed-end municipal-bond fund, not a compounding operating business. It invests primarily in investment-grade U.S. munis that are exempt from regular federal income tax, so its return depends mostly on credit spreads, interest rates, leverage, and the discount to net asset value. The fund's economic moat is thin: asset management is competitive, and scale or tax-exemption alone does not give it durable pricing power. On the numbers, the shares closed at $13.83 on 2026-10-13. FairStock calculates a P/E of 9.95, P/B of 0.84, ROE of 8.64%, and ROCE of 2.65%; the data list a D/E of 0.57. The 5.75% dividend yield is attractive, and beta of 0.58 suggests lower volatility than the broad market. FairStock's Graham Number is $22.63, giving a 38.89% margin of safety, which sounds cheap. But the quality checks are poor: Piotroski F-Score 1/9 and Altman Z-Score 0.73; FairStock Score is only 38/100. Growth is unclear: revenue and profit growth are listed as N/A, and the Lynch category is none because the rules require three years of filed results but only zero are available. A P/B below 1 can be opportunity if NAV is sound and the distribution is covered; it can also be a value trap if leverage and credit losses erode the asset base. I would want evidence on NAV trends, distribution coverage, and leverage before calling this a bargain.

In plain English: MMD is a closed-end fund that owns U.S. municipal bonds, mostly investment-grade and federally tax-exempt. The fund trades below its stated asset value and pays a 5.75% yearly distribution, but the data also show weak financial-strength signals and little history. Based on the numbers given, the price looks cheaper than asset value, but the quality picture is mixed.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer