GBAB - GBAB: Caution Is The Name Of The Game
2024-04-26 14:30:42 ET
Summary
- GBAB is a diversified fund that primarily invests in taxable municipal bonds, bank loans, and high-yield credit securities.
- I previously gave GBAB a "hold" rating due to headwinds and better investment opportunities and that is an argument that holds up to this day.
- I see the premium to NAV and tight corporate bond spreads as reasons to stay cautious on new positions here.
Main Thesis & Background
The purpose of this article is to evaluate the Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust ( GBAB ) as an investment option. This fund offers exposure to taxable municipal bonds, with a primary investment objective to "provide current income with a secondary objective of long-term capital appreciation". This is a diversified fund with a heavy allocation towards taxable muni bonds, bank loans, and high-yield credit securities....
GBAB: Caution Is The Name Of The Game