- Taxable munis still offer relative value, in terms of income, compared to corporate bonds of similar credit ratings.
- If investors anticipate additional stimulus in 2021, muni bonds should get a boost in the new year.
- Despite these tailwinds, there are a few reasons to be cautious on BBN. The fund is sitting at a historically high level, and appears expensive in isolation and compared to its peers.
- BBN has significant exposure to some of the hardest hit states in the country. This could pose a challenge if federal support falls short.
For further details see:
I Still Like Taxable Munis, But BBN's High Premium Is A Concern