EIM: Diversified Muni CEF For Monthly Income With Improving Distribution Coverage

2025-05-30 13:12:08 ET

Summary

• EIM offers an attractive distribution due to a large portion being federally tax-free income.
• Distribution coverage has improved with the latest reporting on the back of the Fed's 100 basis points of cuts.
• Rising long-term rates and leverage have pressured performance more recently, but it could be presenting a more favorable time to consider.

Written by Nick Ackerman, co-produced by Stanford Chemist

Eaton Vance Municipal Bond Fund ( EIM ) is a closed-end fund providing investors with exposure to a diversified portfolio of municipal bonds. The main attraction is the high level of federally tax-free distributions that come via their muni holdings. For some investors who live in states with income tax, there can be a portion of the distribution that is further tax-free at the state level as well....

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