BBN - BBN: Risk-Reward Proposition Is Now More Attractive

• BBN has seen a sharp decline in the short term. This has been the result of rising yields and the fact the fund entered 2021 with a hefty premium.
• The fund's duration remains an immediate concern. If yields tick higher, and especially if the Fed raises rates, BBN will see a negative return.
• That said, I see some value here. The fund now sits at a discount to NAV, and state and local revenues have held up better than expected.
• With a stimulus package on the way, I think the underlying prices of munis may appreciate, once it passes.

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