Bank of America Highlights Buy-Rated Funds Offering Double-Digit Yields for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
Investment Opportunities in Closed-End Funds: Bank of America Securities highlights that closed-end funds (CEFs) offer attractive double-digit yields, with some sectors like loans, multi-sector, and convertibles averaging yields of 11% or more, despite current market valuations not being particularly appealing.
Recommended Funds and Market Trends: The firm recommends several CEFs, including BlackRock MuniAssets and Pimco High Income Fund, noting that many funds are trading at discounts and have strong distribution rates, while also cautioning investors about potential fees and leverage risks.
Analyst Views on MUA
Wall Street analysts forecast MUA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MUA is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About MUA
BlackRock MuniAssets Fund, Inc. (the Fund) is a closed-end management investment company. The Fund's investment objective is to provide high current income exempt from federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes. The Fund invests approximately 65% of its assets in municipal bonds that are rated in the medium to lower categories by nationally recognized rating services (Baa or lower by Moody's Investors Service, Inc. (Moody's) or BBB or lower by Standard & Poor's Corporation (S&P)) or securities, which are of comparable quality. The Fund invests in a range of sectors, including health, transportation, tobacco, education, utilities, state, corporate, and housing. Investment adviser of the Fund is BlackRock Advisors, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
