For those who haven't been checking, Nuveen muni leverage rates have now hit 3.59%, slightly above the average for the PAST YEAR for some funds, at least.  In a bizarre twist of default rate formulae, leverage for generally inferior preferred credits is 45 bp lower at 3.15%.  While this is OK for higher yielding preferreds, muni CEF dividends may be in danger if the cost of leverage remains at these levels or goes higher. (And yes, I realize both APS are AAA based on asset coverage.    

Dick