Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (GBAB) Stock

NEW YORK, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions*. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

GBAB is a diversified fund that mainly focuses on taxable municipal bonds, bank loans, and high-yield credit securities. I had previously rated GBAB as a "hold" because of challenges and more attractive investment options, and I still believe that reasoning is valid. The high premium to NAV and narrow corporate bond spreads are factors that make me hesitant to recommend new positions in this fund.

Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust offers exposure to taxable municipal bonds and has a primary objective of providing current income. GBAB has seen strong performance in the short term, but there are concerns about its ability to sustain this performance. I recommend looking for better value elsewhere and am downgrading my outlook to "hold" for this CEF.

Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust offers exposure to taxable municipal bonds and other IG and high yield credit products. GBAB has struggled and experienced negative returns over the past six months, but I believe the next six months will offer gains. The fund's excessive premium no longer exists, although the extensive use of leverage and the potential for an income cut need to be weighed carefully.