- NBB sits just under its 52-week high and sports a premium to NAV of almost 3%.
- While this fund has been a reasonable performer over the past few months, I believe getting a bit more cautious now makes sense.
- Taxable muni CEFs offer a way to boost yield without going down in credit quality. Therefore, I see them as a valid hedge but would be leery of over-paying for that exposure.
- The recent stimulus measure did not include much direct aid to state and local governments. If this story continues in 2021, muni bonds of all stripes face significant risks.
For further details see:
NBB: A Good Option For Taxable Muni Exposure, But Upside Limited