Blackrock 2037 Municipal Target Term Trust (BMN) Stock

BlackRock 2037 Municipal Target Term Trust offers primarily tax-free income through a diversified muni bond portfolio. BMN's modest leverage with the Fed cutting rates puts the fund in a unique position to potentially start adding further leverage. Despite a lower distribution yield compared to some muni peers, BMN has much stronger distribution coverage, suggesting a more sustainable income stream.

BlackRock 2037 Municipal Target Term Trust (BMN) launched at a favorable time, avoiding the municipal bond market slide caused by rising rates. BMN is a target term fund that aims to return its NAV back to shareholders by 2037, though there is never a guarantee that can happen. The fund has only more recently started to employ leverage, as they remained patient and waited for rates to stabilize it puts them in a more favorable situation.

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BlackRock 2037 Municipal Target Term Trust is a target term fund with the objective of returning $25 at its termination date in 2037. The BMN closed-end fund is a defensive Muni CEF option owing to its lack of leverage (subject to change), duration profile and term structure. BMN has a decent chance of hitting its $25 NAV target in 2037.