IIM - IIM: Deep Discount Distribution Boost And Potential Opportunity Moving Forward
2024-02-13 23:33:04 ET
Summary
- Invesco Value Municipal Income Trust offers a diversified portfolio of municipal bonds and is trading at a deep discount.
- IIM is leveraged, which adds volatility but also potential reward, especially if risk-free rates decrease and the Fed cuts rates.
- The fund recently increased its distribution in an effort to close the discount, although for now, that translates directly into weaker coverage.
Written by Nick Ackerman, co-produced by Stanford Chemist.
Invesco Value Municipal Income Trust ( IIM ) provides investors with a diversified portfolio of municipal bonds. The fund is trading at a substantial discount, which a recent distribution boost is set to address. Of course, just because a closed-end fund pays a higher distribution doesn't mean it is earned, but we will get into the details of that as well....
IIM: Deep Discount, Distribution Boost And Potential Opportunity Moving Forward