LEO: Tax-Free Yield And Measured Duration Exposure
BNY Mellon Strategic Municipals, Inc. (LEO) is a closed-end fund that primarily invests in long-term, investment-grade municipal tax-exempt bonds. The fund offers an unsubsidized SEC yield of approximately 4.81%, which equates to a tax-equivalent yield of about 8.13% for investors in the highest tax bracket. Elevated interest rates and a steeper term spread currently support favorable conditions for the fund's duration strategy.
- ▪BNY Mellon Strategic Municipals, Inc. (LEO) is a closed-end fund focused on investment-grade municipal tax-exempt debt with long-term maturities.
- ▪LEO has an unsubsidized SEC yield of ~4.81%, equivalent to a tax-adjusted yield of ~8.13% for investors in the top tax bracket.
- ▪Current high interest rates and an expanded term spread create favorable conditions for LEO's measured duration exposure strategy.
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