- BBN has been on a great run over the past four months, and its premium to NAV is still very reasonable.
- The credit outlook for munis as a whole is quite strong, with tax revenues remaining resilient and the economy on the rebound.
- Despite the positives, BBN has some drawbacks. One is a high amount of interest rate risk, with a duration above 13 years.
- An infrastructure agreement could bring billions of new supply into the taxable muni market, if it passes as currently written.
For further details see:
BBN: With More Supply Coming, Shifting My Outlook Slightly Lower