- GBAB is a great long-term performer with high-quality characteristics. The fund is up over 8.7% YTD on price and 5.3% on NAV.
- The fund is increasingly venturing into tax-free munis as a way to supplant the declining taxable muni ("BAB") space.
- The yield is being 'juiced' a bit by this shift helping to cover the distribution. But that is also increasing overall risk.
- The valuation seems a bit excessive here and I have since reduced the allocation to it in the Core and rotated out of it into other risk assets.
- We offer up some alternatives.
For further details see:
Guggenheim Taxable Muni: A Quality Fund That Is Slowly Changing