Closed-end municipal bond funds have come screaming back to life as the confluence of cheap financing costs and hearty long-term rates has bolstered dividends and lured investors to tax-equivalent yields of often 10% or more.

Closed-end muni funds are the most valuable they have been since the Lehman Brothers bankruptcy and have delivered 37% returns in 2009, according to a new First Trust Advisors LP index tracking total returns in the sector.

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