The overdistributed income is exactly what I would expect in a fund that has this much disconnect between the NAV, the market price, and the constant coupon. Something has to give when the value of the individual investments go down while the investors bid the same portfolio higher while getting the same yield! That would be the either leverage going higher or yield being borrowed from the future.

Good luck to you all with these funds either way. It is imo generally a great time for leveraged muni funds these days as the bond spreads are going tighter while leverage costs remain minimal...most muni cefs should and are increasing dividends as a result.