2024-12-27 12:50:56 ET
Summary
- Eaton Vance Municipal Bond Fund offers tax-free income as a municipal bond-focused closed-end fund.
- EIM's leverage and interest rate sensitivity pose risks, but rate cuts bode well for the costs of borrowing to decline and lead to NII increasing.
- EIM's current discount isn't that appealing historically, but the tender offers provide opportunities for investors to realize some of that discount.
Written by Nick Ackerman, co-produced by Stanford Chemist.
If one is on the hunt for income, you can find it from multiple different sources, from different structures and investment securities. However, one of the safer and tax-friendly will be municipal bonds. Muni bonds not only provide an investor income, but they keep more of what they are paid when it is tax-free. Today, I'm looking Eaton Vance Municipal Bond Fund ( EIM ). A closed-end fund that provides exposure to muni bonds....
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For further details see:
EIM: Enjoying Tax-Free Income And Tender Offers
