Nuveen Insured Municipal Opportunity Fund Inc. (NYSE:NIO)

This fund is similar to NQU but with an added bonus—its cash flow is guaranteed.

The fund invests its assets in tax-exempt municipal bonds which are either insured for the timely payment of principal and interest or backed by an escrow or trust account containing sufficient U.S. Government securities to ensure timely payment of principal and interest.

This fund is similar to NQU but with an added bonus—its cash flow is guaranteed.

The fund invests its assets in tax-exempt municipal bonds which are either insured for the timely payment of principal and interest or backed by an escrow or trust account containing sufficient U.S. Government securities to ensure timely payment of principal and interest.

The fund currently trades as a 5.6% discount to its net asset value and pays a taxable equivalent dividend of 7.53% for taxpayers in the 33% bracket.

The fund pays monthly dividend and is well diversified. Its average credit quality is AAA, with 100% of its holdings rated A or better.

Its top five states in terms of its holdings are as follows:

•    California…………….20.4%
•    Texas………………….9.9%
•    Alabama…………….…6.9%
•    Nevada……..………….6.5%
•    New York……………….4.9%

Buy Nuveen Insured Municipal Opportunity Fund Inc. (NYSE:NIO) at or near $12.85.

Cheers,

Jack Aubrey
Senior Equity Analyst, Residual Income Report