BBN - BBN: Inflation Is Persistent Don't Get Carried Away With Leveraged Plays
2024-03-14 06:38:56 ET
Summary
- BlackRock Taxable Municipal Bond Trust has not performed as well as expected, with returns not keeping up with cash.
- The high amount of leverage in BBN and lack of progress in inflation make a cautious "hold" rating more appropriate.
- The expected increase in new muni issuance and struggles in the commercial real estate market pose risks for the municipal bond market.
Main Thesis & Background
The purpose of this article is to evaluate the BlackRock Taxable Municipal Bond Trust ( BBN ) as an investment option. This fund offers exposure in taxable municipal bonds, with an objective to "seek high current income, with a secondary objective of capital appreciation."...
BBN: Inflation Is Persistent, Don't Get Carried Away With Leveraged Plays